2.8. ERMUSR 05-14-2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
May 14, 2019 2.8
SUBJECT:
Distributed Energy Resources and Net Metering Policy, Rules, and Tariff
ACTION REQUESTED:
Resolution 19-4-Adopt by resolution the Distributed Energy Resources and Net Metering
Policy; and the Rules Governing the Interconnection of Cogeneration and Small Power
Production Facilities.
Resolution 19-5—Adopt by resolution the Cogeneration and Small Power Production Tariff,
which includes the Distributed Energy Resource Interconnection Process.
BACKGROUND:
Every municipal electric utility in Minnesota should have a policy reflecting the
expectations and obligations of the municipal utility and of customers who seek to interconnect
their own electric generation facilities with the municipal utility electric distribution system.
To allow for consistency over all municipals in the state, ERMU staff used model documents
that were established by the Minnesota Public Utilities Commission (MN PUC) and modified by
the Minnesota Municipal Utilities Association (MMUA) and Minnesota Municipal Power Agency
(MMPA)to develop a policy, rules, and annual tariff to fulfill this requirement. The policies were
adopted by the Commission at the February 13, 2018 Commission meeting.
DISCUSSION:
Over the previous year there has been an extensive amount of work done by MMUA,
Minnesota Rural Electric Association (MREA), and the Minnesota Department of Commerce
(MN DOC)to develop a tariff that is easier for potential interconnection customers and utility
staff members. Changes have also been made to provide greater clarity and remove duplicative
language and typographical errors that were not caught in prior reviews.
The newly revised and reorganized tariff consists of very detailed rules, requirements,
applications, request forms, and processes that are not applicable to customers that are retail
consumers of electricity.This process has taken years and will continue to evolve. In 2020 there
will be revised technical requirements that ERMU will need to evaluate and include as part of
the annual review of this Tariff.
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Other major changes to the tariff are the result of the reorganization of Schedule 3. In an effort
to simplify the interconnection process for customers, the documents included in this Schedule
are now organized by the size and/or complexity of the distributed energy resource seeking
interconnection.The new Schedule 3 also provides customers with the ability to zero in on the
information applicable to their system rather than working through all the information that
may not be applicable to what is being purposed.
The revisions and the reorganization of the Tariff have been reviewed by the MN DOC as a joint
effort with MMUA, MREA, and MMPA. As a result of the extensive revisions and reorganization,
ERMU staff believes it is best to adopt the proposed Policies, Rules, and Tariff by new
resolutions to completely replace the Policies, Rules, and Tariff adopted February 13, 2018.
It's important that the ERMU Commission adopt the new Policy, Rules, and Tariff because, by
doing so, it will preserve the right of the ERMU Commission to retain control over these issues.
FINANCIAL IMPACT:
N/A
ATTACHMENTS:
• Resolution No. 19-4—Adopting the ERMU Distributed Energy Resources and Net
Metering Policy; and the ERMU Rules Governing the Interconnection of Cogeneration
and Small Power Production Facilities Policy
• Proposed ERMU Policy—E.12—Distributed Generation and Net Metering Policy
• Proposed ERMU Policy—E.12a—Rules Governing the Interconnection of Cogeneration
and Small Power Production Facilities
• Resolution No. 19-5—Adopting the ERMU Cogeneration and Small Power Production
Tariff which includes the Distributed Energy Resource Interconnection Process
• Proposed ERMU Policy—E.12b—Cogeneration and Small Power Production Tariff
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RESOLUTION NO. 19-4
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION ADOPTING ELK RIVER MUNICIPAL UTILITIES POLICY REGARDING DISTRIBUTED
ENERGY RESOURCES AND NET METERING;AND RULES GOVERNING THE INTERCONNECTION
OF COGENERATION AND SMALL POWER PRODUCTION FACILITIES.
WHEREAS, the City of Elk River is served by Elk River Municipal Utilities, which is committed to
providing customers with reliable and affordable power.
WHEREAS, the purpose of this Distributed Energy Resources and Net Metering Policy is to
establish the qualification criteria and certain responsibilities for the delivery, interconnection,
metering, and purchase of electricity from distributed generation facilities.
WHEREAS, this policy, in accordance with Minnesota Statutes §216B.164, shall be implemented
to give the maximum possible encouragement to cogeneration and small power production
consistent with protection of the utility's ratepayers and the public.
WHEREAS, the purpose of the Cogeneration and Small Power Production Rules is for Elk River
Municipal Utilities to implement certain provisions of Minnesota Statutes §216B.164, the Public
Utility Regulatory Policies Act of 1978, and Federal Energy Regulatory Commission regulations
related to customer-owned distributed energy resources.
WHEREAS, the adoption of these rules establishes that the Elk River Municipal Utilities
Commission is the interpreting body and arbiter of the provisions of Minnesota Statutes
§216B.164 for Elk River Municipal Utilities.
WHEREAS, Elk River Municipal Utilities shall annually file a cogeneration and small power
production tariff with Elk River Municipal Utilities Commission under these rules.
WHEREAS, the cogeneration and small power production tariff shall include a calculation of
average retail utility energy rates, standard contracts to be used with qualifying facilities,
interconnection process and technical requirements, and Elk River Municipal Utilities estimated
average incremental energy costs and net annual avoided capacity costs.
WHERAS, all filings under these rules shall be maintained at the Elk River Municipal Utilities
offices and shall be made available for public inspection during normal business hours.
THEREFORE, BE IT RESOLVED that the Elk River Municipal Utilities Commission adopts the
attached ERMU Policy—E.12 - Distributed Energy Resources and Net Metering Policy, and
ERMU Policy— E12.a - Rules Governing the Interconnection of Cogeneration and Small Power
Production Facilities.
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This Resolution Passed and Adopted this 14th day of May, 2019.
John J. Dietz, Chair
Troy Adams, P.E., General Manager
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Elk River
Municipal Utilities
E.12 - Distributed Energy Resources and Net Metering Policy
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To establish the application procedure and qualification criteria for all customers for the
delivery, interconnection, metering and purchase of electricity from distributed energy
resource facilities and to comply with applicable laws and rules governing distributed energy
resources.
The utility recognizes its obligation to provide interconnection to eligible qualifying facilities and will
comply with all applicable laws and rules governing distributed energy resources.
For purposes of this policy,the following terms have the meanings given them:
A. Average retail energy rate-the average of the retail energy rates, exclusive of special rates
based on income, age, or energy conservation, according to the applicable rate schedule of
the utility for sales to the class of customer of which the customer/qualifying facility
belongs.
B. Avoided costs-the incremental costs to the utility of electric energy or capacity or both
which, but for the purchase from the qualifying facility,the utility would generate itself or
purchase from another source.
C. Contract-the written agreement between the customer/qualifying facility and the utility,
as established in the utility's Rules Governing Interconnection of Cogeneration and Small
Power Production.
D. Distributed energy resource (DER) -a distributed generation system incorporated with or
without an electric storage system.
E. Interconnection application-the form to be used by the customer to submit its formal
request for interconnection to the utility and which shall be substantially similar in form to
that contained in the Distributed Energy Resources Interconnection Process adopted by the
utility.
F. Interconnection rules-any applicable rules developed in accordance with Minnesota
Statutes§§216B.164 and 2166.1611.This includes the utility's Rules Governing
Interconnection of Cogeneration and Small Power Production. It also includes the utility's
Distributed Energy Resources Interconnection Process which includes its Simplified Process,
Fast Track Process, and Study Process as well as the technical requirements incorporated
therein or any future technical requirements adopted by the utility.
G. Measured capacity-for purposes of determining capacity, it shall be measured based on the
highest fifteen (15) minute average demand of the unit in any one billing period.
H. Net metering/net billing-the process whereby the customer and the utility compensate
each other based on the difference in the amount of energy each sells to the other at the net
metered facility.
I. Net metered facility-an electric generation facility constructed for the purpose of offsetting
energy use through the use of renewable energy or high efficiency generation sources with a
capacity of less than 40 kilowatts that has elected in writing to be compensated for excess
generation through net metering/net billing.
J. Total generator nameplate capacity-the nominal voltage (V), current(A), maximum active
power(kWac),apparent power(kVA), and reactive power(kvar) at which a distributed
energy resource (DER), is capable of sustained operation. For a qualifying facility with
multiple units,the total generator capacity is equal to the sum of all individual DER units'
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nameplate rating in the qualifying facility.The DER system's total generation capacity may,
with the utility's agreement, be limited thought use of control systems, power relays or
similar device settings or adjustments as identified in IEEE 1547. The customer must fully,
accurately and completely disclose in its interconnection application to the utility,the
technical specifications for any capacity limiting device contemplated and the customer shall
furnish the utility with any factory manuals or other similar documents requested from the
utility regarding such limiting or other control devices which factor into the calculation of
total generator capacity.
K. Qualifying facility-a cogeneration or small power production facility which satisfies the
conditions established in Code of Federal Regulations,title 18, part 292.The qualifying
facility must be owned by a customer of the utility and located in the utility service area.
L. Utility—Elk River Municipal Utilities.
In the event an inconsistency exists between terms in this policy and those established by
applicable statute, rule or court order,then the definition so established shall supersede the
definition used in this policy and shall govern.
All customers are eligible for distributed generation, interconnection with the utility's
distribution system and application of net metering upon the following terms and conditions.
1. The customer must meet the eligibility requirements set forth in the federal Public
Utility Regulatory Policies Act of 1978 (PURPA) *18 C.F.R. 292.303, 292.304 and
Minnesota's distributed generation laws. Minn. Stat. §216B.164.
2. The customer shall complete, sign and return to utility either the Interconnection
Application or the Simplified Process Application in the form prescribed in the utility's
Distributed Energy Resources Interconnection Process. The application shall be approved
by the utility prior to the customer beginning the project.The customer signature on the
application indicates the customer shall follow the steps outlined in the utility's
interconnection rules.
3. The customer shall enter into a written contract with the utility using the uniform
contract contained in the utility's Rules Governing Interconnection of Cogeneration
and Small Power Production.
4. The qualifying facility shall pay the utility for all reasonable costs of interconnection
including those costs outlined in Minnesota Statute 2166.164,the utility's DER
Interconnection Process, and the State of Minnesota Interconnection Technical
Requirements.
5. The qualifying facility's total generator nameplate capacity shall be less than 40 kW and
the facility shall operate at a measured capacity of less than 40 kW at all times to qualify
for net metering/net billing or roll over credit compensation.
6. The utility may limit the capacity and operating characteristics of qualifying facility single
phase generators in a manner consistent with the utility limitations for single phase
motors,when necessary to avoid a qualifying facility from causing problems with the
service of other customers.
7. The utility may require the qualifying facility to discontinue parallel generation operations
when necessary for system safety.
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8. The power output from the qualifying facility must be maintained so that frequency and
voltage are compatible with normal utility service and do not cause that service to fall
outside the prescribed limits of interconnection rules and other standard limitations.
9. The qualifying facility shall keep in force liability insurance against personal or property
damage due to the installation, interconnection, and operation of its electric generating
facilities.The amount of insurance coverage shall be the maximum amount of said
insurance for a qualifying facility or net metered facility as outlined in the utility's DER
Interconnection Process.
10. Failure of the qualifying facility to operate its distributed energy resource at a measured
capacity below the 40 kW AC capacity limit established by Minn. Stat. §216B.164, Sub. 3
and as contemplated by this policy,shall result in the following.The utility will notify the
customer/qualifying facility of the fact that its generating equipment has failed to operate
below the 40 kW AC maximum capacity and will provide the customer/qualifying facility
with the date,time and kW reading that substantiate this finding.
11. The utility shall compensate the customer/qualifying facility for all metered electricity
produced by said qualifying facility during the thirty(30) day period during which the
failure occurred, at the utility's wholesale power supplier's avoided cost rate.
12. The utility shall continue to pay the customer/qualifying facility for subsequent electricity
produced and delivered pursuant to the contract,at the utility's wholesale power
supplier's avoided cost rate until:
1. The problem with the generator that caused it to operate at or above the statutory
maximum capacity has been remedied;and
2. The utility has been provided documentation adopted by a Minnesota Professional
Engineer that confirms the problem with the generator has been remedied.
13. Any customer account eligible for net metering/net billing is not eligible for any other load
management discounts unless agreed to by the utility.
14. Payment for the purchase of the qualifying facility's electricity herein shall be in the form
of a credit on the customer's monthly billing invoice or paid by check or electronic
payment to the customer within fifteen (15) days of the billing date,whichever is selected
and indicated in the contract.
15. The customer must be, and continue to be, current with payment on its electric account
with utility.
16. The customer must not enter into any arrangement that violates the utility's exclusive right
to provide electric service in its service area under Minnesota Statutes §§216B.37-44.
17. In the event that the distributed generator fails to meet the requirements of this policy for
a total distributed generation capacity of less than 40 kW AC, and fails to satisfy the
corrective requirements set forth in Section 12 above,then the utility will have the right to
(1) cancel the contract with the owner of the qualifying facility, and (2) enter into a new
contract with the owner of the qualifying facility that, among other changes, adjusts the
qualifying facility's rated capacity and specifies avoided cost pricing for the qualifying
facility's output.To the extent that the utility does not have the obligation to make
purchases from qualifying facilities of 40 kW or greater due to transfer of the obligation to
the utility's wholesale supplier that has been approved by the Federal Energy Regulatory
Commission,the new agreement will be between the utility's wholesale supplier and the
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qualifying facility. In either case,the utility(and,as applicable,the utility's wholesale
supplier) and the owner of the qualifying facility will cooperate in the transition from the
form of contract set forth in the utility's Rules Governing Interconnection of Cogeneration
and Small Power Production to a new form of contract appropriate to a qualifying facility
with a capacity of 40 kW or greater.
18. Fully executed interconnection contracts for distributed energy resources may be
canceled in the event the distributed energy resource fails to interconnect to the utility's
distribution system within twelve (12) months of signing of the interconnection contract
by the qualifying facility and the utility.
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Elk River T
Municipal Utilities
E.12a — Rules Governing the Interconnection of
Cogeneration and Small Power Production
Facilities with Elk River Municipal Utilities
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Part A. DEFINITIONS
Subpart 1.Applicability. For purposes of these rules,the following terms have the meanings given
them below.
Subp. 2.Average retail utility energy rate. "Average retail utility energy rate" means,for any class of
utility customer,the quotient of the total annual class revenue from sales of electricity minus the
annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales.The
computation shall use data from the most recent calendar year available.
Subp. 3. Backup power. "Backup power" means electric energy or capacity supplied by the utility to
replace energy ordinarily generated by a qualifying facility's own generation equipment during an
unscheduled outage of the facility.
Subp.4.Capacity. "Capacity" means the capability to produce,transmit, or deliver electric energy,
and is measured by the number of megawatts alternating current at the point of common coupling
between a qualifying facility and the utility's electric system during a 15-minute interval period.
Subp. 5.Capacity costs. "Capacity costs" means the costs associated with providing the capability to
deliver energy.The utility capacity costs consist of the costs of facilities from the utility and the
utility's wholesale provider used to generate,transmit, and distribute electricity and the fixed
operating and maintenance costs of these facilities.
Subp. 6. Customer. "Customer" means the person named on the utility electric bill for the premises.
Subp. 7. Energy. "Energy" means electric energy, measured in kilowatt-hours.
Subp. 8. Energy costs. "Energy costs" means the variable costs associated with the production of
electric energy.They consist of fuel costs and variable operating and maintenance expenses.
Subp. 9. Firm power. "Firm power" means energy delivered by the qualifying facility to the utility
with at least a 65 percent on-peak capacity factor in the month.The capacity factor is based upon
the qualifying facility's maximum metered capacity delivered to the utility during the on-peak hours
for the month.
Subp. 10.Governing body. "Governing body" means Elk River Municipal Utilities Commission.
Subp. 11. Interconnection costs. "Interconnection costs" means the reasonable costs of connection,
switching, metering,transmission, distribution,safety provisions, and administrative costs incurred
by the utility that are directly related to installing and maintaining the physical facilities necessary to
permit interconnected operations with a qualifying facility. Costs are considered interconnection
costs only to the extent that they exceed the costs the utility would incur in selling electricity to the
qualifying facility as a nongenerating customer.
Subp. 12. Interruptible power. "Interruptible power" means electric energy or capacity supplied by
the utility to a qualifying facility subject to interruption under the provisions of the utility's tariff
applicable to the retail class of customers to which the qualifying facility would belong irrespective
of its ability to generate electricity.
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Subp. 13. Maintenance power. "Maintenance power" means electric energy or capacity supplied by
a utility during scheduled outages of the qualifying facility.
Subp. 14.On-peak hours. "On-peak hours" means either those hours formally designated by the
utility as on-peak for ratemaking purposes or those hours for which its typical loads are at least 85
percent of its average maximum monthly loads.
Subp. 15. Point of distributed energy resource (DER) connection. "Point of DER connection" means
the point where the qualifying facility's generation system, including the point of generator output,
is connected to the customer's electric system and meets the current definition of IEEE 1547.
Subp. 16. Purchase. "Purchase" means the purchase of electric energy or capacity or both from a
qualifying facility by the utility.
Subp. 17.Qualifying facility. "Qualifying facility" means a cogeneration or small power production
facility which satisfies the conditions established in Code of Federal Regulations,title 18, part 292.
The initial operation date or initial installation date of a cogeneration or small power production
facility must not prevent the facility from being considered a qualifying facility for the purposes of
this chapter if it otherwise satisfies all stated conditions. The qualifying facility must be owned by a
Customer and located in the utility service area.
Subp. 18.Sale. "Sale" means the sale of electric energy or capacity or both by the utility to a
qualifying facility.
Subp. 19a. Standby charge. "Standby charge" means the charge imposed by the utility upon a
qualifying facility for the recovery of costs for the provision of standby services necessary to make
electricity service available to the qualifying facility.
Subp. 19b.Standby service. "Standby service" means the service to potentially provide electric
energy or capacity supplied by the utility to a qualifying facility greater than 40 kW.
Subp. 20.Supplementary power. "Supplementary power" means electric energy or capacity
supplied by the utility which is regularly used by a qualifying facility in addition to that which the
facility generates itself.
Subp. 21.System emergency. "System emergency" means a condition on the utility's system which
is imminently likely to result in significant disruption of service to customers or to endanger life or
property.
Subp. 22. Utility. "Utility" means Elk River Municipal Utilities.
Part B. SCOPE AND PURPOSE
The purpose of these rules is to implement certain provisions of Minnesota Statutes,
§216B.164;the Public Utility Regulatory Policies Act of 1978, United States Code,title 16, §824a-3;
and the Federal Energy Regulatory Commission regulations, Code of Federal Regulations,title 18,
part 292.These rules shall be applied in accordance with their intent to give the maximum possible
encouragement to cogeneration and small power production consistent with protection of the
ratepayers and the public.
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Part C. FILING REQUIREMENTS
Annually the utility shall file for review and approval,a cogeneration and small power
production tariff with the governing body.The tariff must contain schedules 1—4.
SCHEDULE 1.
Schedule 1 shall contain the calculation of the average retail utility energy rates to be updated
annually.
SCHEDULE 2.
Schedule 2 shall contain all standard contracts to be used with qualifying facilities, containing
applicable terms and conditions.
SCHEDULE 3.
Schedule 3 shall contain the utility's adopted interconnection process, safety standards,
technical requirements for distributed energy resource systems, required operating procedures for
interconnected operations, and the functions to be performed by any control and protective
apparatus.
SCHEDULE 4.
Schedule 4 shall contain the estimated average incremental energy costs by seasonal, peak and
off-peak periods for the utility's power supplier from which energy purchases are first avoided.
Schedule 4 shall also contain the net annual avoided capacity costs, if any, stated per kilowatt-hour
and averaged over the on-peak hours and over all hours for the utility's power supplier from which
capacity purchases are first avoided. Both the average incremental energy costs and net annual
avoided capacity costs shall be increased by a factor equal to 50 percent of the utility and the
utility's power supplier's overall line losses due to distribution,transmission and transformation of
electric energy.
Part D.AVAILABILITY OF FILINGS
All filings shall be maintained at the utility's general office and any other offices of the utility
where rate tariffs are kept.The filings shall be made available for public inspection during normal
business hours.The utility shall supply the current year's distributed generation rates,
interconnection procedures and application form on the utility website, if practicable, or at the
utility office.
Part E. REPORTING REQUIREMENTS
Annually the utility shall report to the governing body for its review and approval an annual
report including information in subparts 1-3. The utility shall still comply with other federal and state
reporting of distributed generation to federal and state agencies expressly required by statute.
Subpart 1.Summary of average retail utility energy rate. A summary of the qualifying facilities that
are currently served under average retail utility energy rate.
Subp. 2. Other qualifying facilities.A summary of the qualifying facilities that are not currently
served under average retail utility energy rate.
Subp. 3.Wheeling.A summary of the wheeling undertaken with respect to qualifying facilities.
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Part F.CONDITIONS OF SERVICE
Subpart 1. Requirement to purchase.The utility shall purchase energy and capacity from any
qualifying facility which offers to sell energy and capacity to the utility and agrees to the conditions
in these rules.
Subp. 2.Written contract.A written contract shall be executed between the qualifying facility and
the utility.
Part G. ELECTRICAL CODE COMPLIANCE
Subpart 1. Compliance;standards.The interconnection between the qualifying facility and the
utility must comply with the requirements in the most recently published edition of the National
Electrical Safety Code issued by the Institute of Electrical and Electronics Engineers.The
interconnection is subject to subparts 2 and 3.
Subp. 2. Interconnection.The qualifying facility is responsible for complying with all applicable local,
state,and federal codes, including building codes,the NationalElectrical Code (NEC),the National
Electrical Safety Code(NESC), and noise and emissions standards. The utility shall require proof that
the qualifying facility is in compliance with the NEC before the interconnection is made.The
qualifying facility must obtain installation approval from an electrical inspector recognized by the
Minnesota State Board of Electricity.
Subp. 3.Generation system.The qualifying facility's generation system and installation must comply
with the American National Standards Institute/Institute of Electrical and Electronics Engineers
(ANSI/IEEE)standards applicable to the installation.
Part H. RESPONSIBILITY FOR APPARATUS
The qualifying facility,without cost to the utility, must furnish, install, operate, and maintain
in good order and repair any apparatus the qualifying facility needs in order to operate in
accordance with schedule 3.
Part I.TYPES OF POWER TO BE OFFERED; STANDBY SERVICE
Subpart 1. Service to be offered.The utility shall offer maintenance, interruptible,supplementary,
and backup power to the qualifying facility upon request.
Subp. 2.Standby service.The utility shall offer a qualifying facility standby power or service at the
utility's applicable standby rate schedule.
Part J. DISCONTINUING SALES DURING EMERGENCY
The utility may discontinue sales to the qualifying facility during a system emergency, if the
discontinuance and recommencement of service is not discriminatory.
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Part K. RATES FOR UTILITY SALES TO A QUALIFYING FACILITY
Rates for sales to a qualifying facility are governed by the applicable tariff for the class of
electric utility customers to which the qualifying facility belongs or would belong were it not a
qualifying facility. Such rates are not guaranteed and may change from time to time at the discretion
of the utility.
Part L. STANDARD RATES FOR PURCHASES FROM QUALIFYING FACILITIES
Subpart 1.Qualifying facilities with 100-kilowatt capacity or less. For qualifying facilities with
capacity of 100 kilowatts or less, standard purchase rates apply.The utility shall make available four
types of standard rates, described in parts M, N, 0, and P. The qualifying facility with a capacity of
100 kilowatts or less must choose interconnection under one of these rates, and must specify its
choice in the written contract required in part V. Any net credit to the qualifying facility must, at its
option, be credited to its account with the utility or returned by check or comparable electronic
payment service within 15 days of the billing date.The option chosen must be specified in the
written contract required in part V. Qualifying facilities remain responsible for any monthly service
charges and demand charges specified in the tariff under which they consume electricity from the
utility.
Subp. 2.Qualifying facilities over 100-kilowatt capacity. A qualifying facility with more than 100-
kilowatt capacity has the option to negotiate a contract with the utility or, if it commits to provide
firm power, be compensated under standard rates.
Part M.AVERAGE RETAIL UTILITY ENERGY RATE
Subpart 1.Applicability.The average retail utility energy rate is available only to customer-owned
qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power
for sale on either a time-of-day basis, a simultaneous purchase and sale basis or roll-over credit
basis.
Subp. 2. Method of billing.The utility shall bill the qualifying facility for the excess of energy
supplied by the utility above energy supplied by the qualifying facility during each billing period
according to the utility's applicable retail rate schedule.
Subp. 3.Additional calculations for billing. When the energy generated by the qualifying facility
exceeds that supplied by the utility to the customer at the same site during the same billing period,
the utility shall compensate the qualifying facility for the excess energy at the average retail utility
energy rate.
Part N. SIMULTANEOUS PURCHASE AND SALE BILLING RATE
Subpart 1.Applicability.The simultaneous purchase and sale rate is available only to qualifying
facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on
average retail utility energy rate basis,time-of-day basis or roll-over credit basis.
Subp. 2. Method of billing.The qualifying facility must be billed for all energy and capacity it
consumes during a billing period according to the utility's applicable retail rate schedule.
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Subp. 3.Compensation to qualifying facility;energy purchase.The utility shall purchase all energy
which is made available to it by the qualifying facility. At the option of the qualifying facility, its
entire generation must be deemed to be made available to the utility. Compensation to the
qualifying facility must be the energy rate shown on schedule 4.
Subp.4. Compensation to qualifying facility;capacity purchase. If the qualifying facility provides
firm power to the utility,the capacity component must be the utility's net annual avoided capacity
cost per kilowatt-hour averaged over all hours shown on schedule 4, divided by the number of hours
in the billing period. If the qualifying facility does not provide firm power to the utility, no capacity
component may be included in the compensation paid to the qualifying facility.
Part O.TIME-OF-DAY PURCHASE RATES
Subpart 1.Applicability.Time-of-day rates are required for qualifying facilities with capacity of 40
kilowatts or more and less than or equal to 100 kilowatts, and they are optional for qualifying
facilities with capacity less than 40 kilowatts. Time-of-day rates are also optional for qualifying
facilities with capacity greater than 100 kilowatts if these qualifying facilities provide firm power.
Subp. 2. Method of billing.The qualifying facility must be billed for all energy and capacity it
consumes during each billing period according to the utility's applicable retail rate schedule.
Subp. 3. Compensation to qualifying facility;energy purchases.The utility shall purchase all energy
which is made available to it by the qualifying facility. Compensation to the qualifying facility must
be the energy rate shown on schedule 4.
Subp.4.Compensation to qualifying facility; capacity purchases. If the qualifying facility provides
firm power to the utility,the capacity component must be the capacity cost per kilowatt shown on
schedule 4 divided by the number of on-peak hours in the billing period.The capacity component
applies only to deliveries during on-peak hours. If the qualifying facility does not provide firm power
to the utility, no capacity component may be included in the compensation paid to the qualifying
facility.
Part P. ROLL-OVER CREDIT PURCHASE RATES
Subpart 1.Applicability.The roll-over credit rate is available only to qualifying facilities with capacity
of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility
energy rate basis,time-of-day basis or simultaneous purchase and sale basis.
Subp. 2. Method of billing.The utility shall bill the qualifying facility for the excess of energy
supplied by the utility above energy supplied by the qualifying facility during each billing period
according to the utility's applicable retail rate schedule.
Subp. 3.Additional calculations for billing. When the energy generated by the qualifying facility
exceeds that supplied by the utility during a billing period,the utility shall apply the excess kilowatt
hours as a credit to the next billing period kilowatt hour usage. Excess kilowatt hours that are not
offset in the next billing period shall continue to be rolled over to the next consecutive billing period.
Any excess kilowatt hours rolled over that are remaining at the end of each calendar year shall
cancel with no additional compensation.
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Part Q.CONTRACTS NEGOTIATED BY CUSTOMER
A qualifying facility with capacity greater than 100 kilowatts must negotiate a contract with the
utility setting the applicable rates for payments to the customer of avoided capacity and energy
costs.
Subpart 1.Amount of capacity payments.The qualifying facility which negotiates a contract under
part Q must be entitled to the full avoided capacity costs of the utility's wholesale power provider,
the Minnesota Municipal Power Agency.The amount of capacity payments will be determined by
the utility and the utility's wholesale power provider.
Subp. 2. Full avoided energy costs.The qualifying facility which negotiates a contract under part Q
must be entitled to the full avoided energy costs of the utility's wholesale power provider,the
Minnesota Municipal Power Agency.The costs must be adjusted as appropriate to reflect line losses.
Part R.WHEELING
Qualifying facilities with capacity of 30 kilowatts or greater, are interconnected to the utility's
distribution system and choose to sell the output of the qualifying facility to any other utility, must
pay any appropriate wheeling charges to the utility. Within 15 days of receiving payment from the
utility ultimately receiving the qualifying facility's output,the utility shall pay the qualifying facility
the payment less the charges it has incurred and its own reasonable wheeling costs.
Part S. NOTIFICATION TO CUSTOMERS
Subpart 1. Contents of written notice. Following each annual review and approval by the utility of
the cogeneration rate tariffs the utility shall furnish in the monthly newsletter or similar mailing,
written notice to each of its customers that the utility is obligated to interconnect with and purchase
electricity from cogenerators and small power producers.
Subp. 2.Availability of information.The utility shall make available to all interested persons upon
request,the interconnection process and requirements adopted by the utility, pertinent rate
schedules and sample contractual agreements.
Part T. DISPUTE RESOLUTION
In case of a dispute between a utility and a qualifying facility or an impasse in the negotiations
between them,either party may request the governing body to determine the issue.
Part U. INTERCONNECTION CONTRACTS
Subpart 1. Interconnection standards.The utility shall provide a customer applying for
interconnection with a copy of, or electronic link to,the utility's adopted interconnection process
and requirements.
Subp. 2. Existing contracts.Any existing interconnection contract executed between the utility and a
qualifying facility with capacity of less than 40 kilowatts remains in force until terminated by mutual
agreement of the parties or as otherwise specified in the contract.The governing body has assumed
7
73
all dispute responsibilities as listed in existing interconnection contracts. Disputes are resolved in
accordance with Part T.
Subp. 3. Renewable energy credits; ownership. Generators own all renewable energy credits unless
other ownership is expressly provided for by a contract between a generator and the utility.
Part V. UNIFORM CONTRACT
The form for uniform contract that shall be used between the utility and a qualifying facility
having less than 40 kilowatts of capacity is as shown in subpart 1.
Subpart 1. Uniform Contract for Cogeneration and Small Power Production Facilities. (See attached
contract form.)
8
74
UNIFORM CONTRACT FOR COGENERATION AND
SMALL POWER PRODUCTION FACILITIES
THIS CONTRACT is entered into , , by
, a municipal utility under Minnesota law, (hereafter called
"Utility") and (hereafter called "QF").
RECITALS
The QF has installed electric generating facilities, consisting of
(Description of facilities), rated at kilowatts AC
of electricity, on property located at
The QF is a customer of the Utility located within the assigned electric service territory of
the Utility.
The QF is prepared to generate electricity in parallel with the Utility.
The QF's electric generating facilities meet the requirements of the rules adopted by the
Utility on Cogeneration and Small Power Production and any technical standards for
interconnection the Utility has established that are authorized by those rules.
The Utility is obligated under federal and Minnesota law to interconnect with the QF and to
purchase electricity offered for sale by the QF.
A contract between the QF and the Utility is required.
AGREEMENTS
The QF and the Utility agree:
1. The Utility will sell electricity to the QF under the rate schedule in force for the class
of customer to which the QF belongs.
2. The Utility will buy electricity from the QF under the current rate schedule filed with
the city council or city-appointed governing body of the utility. The QF elects the
rate schedule category hereinafter indicated:
75
a. Average retail utility energy rate.
• QF capacity must be less than 40 kW.
b. Simultaneous purchase and sale billing rate.
• QF capacity must be less than 40 kW.
c. Roll-over credits.
• QF capacity must be less than 40 kW.
d. Time-of-day purchase rates.
• QF capacity must be 40 kW or more and less than or equal to 100 kW.
A copy of the presently approved rate schedule is attached to this contract.
3. The rates for sales and purchases of electricity may change over the time this
contract is in force, due to actions of the Utility or the State of Minnesota, and the
QF and the Utility agree that sales and purchases will be made under the rates in
effect each month during the time this contract is in force.
4. The Utility will compute the charges and payments for purchases and sales for
each billing period. Any net credit to the QF, other than kilowatt-hour credits under
clause 2(c), will be made under one of the following options as chosen by the QF.
a. Credit to the QF's account with the Utility.
b. Paid by check or electronic payment service to the QF within fifteen (15)
days of the billing date.
5. Renewable energy credits associated with generation from the facility are owned
by:
•
6. The QF must operate its electric generating facilities within any rules, regulations,
and policies adopted by the Utility not prohibited by the rules governing
Cogeneration and Small Power Production on the Utility's system which provide
reasonable technical connection and operating specifications for the QF and are
consistent with the Minnesota Public Utilities Commission's rules on Cogeneration
and Small Power Production, as required under Minnesota Statutes §216B.164,
subdivision 9.
7. The QF will not enter into an arrangement whereby electricity from the generating
facilities will be sold to an end user in violation of the Utility's exclusive right to
provide electric service in its service area under Minnesota Statutes, §216B.37-44.
76
8. The QF will operate its electric generating facilities so that they conform to the
national, state, and local electric and safety codes, and will be responsible for the
costs of conformance.
9. The QF is responsible for the actual, reasonable costs of interconnection which are
estimated to be $ . The QF will pay the Utility in this way:
•
10. The QF will give the Utility reasonable access to its property and electric generating
facilities if the configuration of those facilities does not permit disconnection or
testing from the Utility 's side of the interconnection. If the Utility enters the QF's
property, the Utility will remain responsible for its personnel.
11. The Utility may stop providing electricity to the QF during a system emergency. The
Utility will not discriminate against the QF when it stops providing electricity or
when it resumes providing electricity.
12. The Utility may stop purchasing electricity from the QF when necessary for the
Utility to construct, install, maintain, repair, replace, remove, investigate, or inspect
any equipment or facilities within its electric system. The Utility may stop
purchasing electricity from the QF in the event the generating facilities listed in this
contract are documented to be causing power quality, safety or reliability issues to
the Utility's electric distribution system.
The Utility will notify the QF before it stops purchasing electricity in this way:
13. The QF will keep in force general liability insurance against personal or property
damage due to the installation, interconnection, and operation of its electric
generating facilities. The amount of insurance coverage will be $
(The amount must be consistent with the distributed generation tariff adopted by
the Utility pursuant to Minnesota Statutes §216B.1611, subdivision 3, clause 2.)
14. The QF and the Utility agree to attempt to resolve all disputes arising hereunder
promptly and in a good faith manner.
15. The city council or city-appointed body governing the Utility has authority to
consider and determine disputes, if any, that arise under this contract in
accordance with procedures in the rules it adopts implementing Minnesota Statute
§216B.164, pursuant to §216B.164, subdivision 9.
77
16. This contract becomes effective as soon as it is signed by the QF and the Utility.
This contract will remain in force until either the QF or the Utility gives written notice
to the other that the contract is canceled. This contract will be canceled thirty (30)
days after notice is given. If the listed electric generating facilities are not
interconnected to the Utility's distribution system within twelve months of the
contract being signed by the QF and the Utility, the contract terminates. The QF
and the Utility may delay termination by mutual agreement.
17. Neither the QF nor the Utility will be considered in default as to any obligation if the
QF or the Utility is prevented from fulfilling the obligation due to an act of God, labor
disturbance, act of public enemy, war, insurrection, riot, fire, storm or flood,
explosion, breakage or accident to machinery or equipment, an order, regulation or
restriction imposed by governmental, military or lawfully established civilian
authorities, or other cause beyond the QF's or Utility's control. However, the QF or
Utility whose performance under this contract is hindered by such an event shall
make all reasonable efforts to perform its obligations.
18. This contract can only be amended or modified by mutual agreement in writing
signed by the QF and the Utility.
19. The OF must notify the Utility prior to any change in the electric generating
facilities' capacity size or generating technology according to the interconnection
process adopted by the Utility.
20. Termination of this contract is allowed (i) by the QF at any time without restriction;
(ii) by Mutual Agreement between the Utility and the QF; (iii) upon abandonment or
removal of electric generating facilities by the QF; (iv) by the Utility if the electric
generating facilities are continuously non-operational for any twelve (12)
consecutive month period; (v) by the Utility if the QF fails to comply with applicable
interconnection design requirements or fails to remedy a violation of the
interconnection process; or (vi) by the Utility upon breach of this contract by the QF
unless cured with notice of cure received by the Utility prior to termination.
21. In the event this contract is terminated, the Utility shall have the rights to disconnect
its facilities or direct the QF to disconnect its generating facilities.
22. This contract shall continue in effect after termination to the extent necessary to
allow either the Utility or the QF to fulfill rights or obligations that arose under the
contract.
23. Transfer of ownership of the generating facilities shall require the new owners and
the Utility to execute a new contract. Upon the execution of a new contract with the
new owners this contract shall be terminated.
78
24. The QF and the Utility shall at all times indemnify, defend, and save each other
harmless from any and all damages, losses, claims, including claims and actions
relating to injury or death of any person or damage to property, costs and
expenses, reasonable attorneys' fees and court costs, arising out of or resulting
from the QF's or the Utility's performance of its obligations under this contract,
except to the extent that such damages, losses or claims were caused by the
negligence or intentional acts of the QF or the Utility.
25. The Utility and the QF will each be responsible for its own acts or omissions and
the results thereof to the extent authorized by law and shall not be responsible for
the acts or omissions of any others and the results thereof.
26. The QF's and the Utility's liability to each other for failure to perform its obligations
under this contract shall be limited to the amount of direct damage actually
occurred. In no event, shall the QF or the Utility be liable to each other for any
punitive, incidental, indirect, special, or consequential damages of any kind
whatsoever, including for loss of business opportunity or profits, regardless of
whether such damages were foreseen.
27. The Utility does not give any warranty, expressed or implied, to the adequacy,
safety, or other characteristics of the QF's interconnected system.
28. This contract contains all the agreements made between the QF and the Utility.
The QF and Utility are not responsible other than those stated in this contract.
THE QF AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE TO BE
BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY HAVE EACH
SIGNED THIS CONTRACT BELOW ON THE DATE LISTED BY SIGNER.
QF
By:
Printed Name:
DATE:
UTILITY
By:
Printed Name:
DATE:
Contract Version: February 2019
79
RESOLUTION NO. 19-5
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION ADOPTING THE ELK RIVER MUNICIPAL UTILITIES COGENERATION AND SMALL
POWER PRODUCTION TARIFF, WHICH INCLUDES THE DISTRIBUTED ENERGY RESOURCE
INTERCONNECTION PROCESS.
WHEREAS, by order on September 28, 2004, the Minnesota Public Utilities Commission
adopted Generic Standards for Utility Tariffs for Interconnection and Operation of Distributed
Generation Facilities; and
WHEREAS, Minnesota Statutes Section 2166.1611, subdivision 3 required municipal utilities to
adopt a generation tariff that addressed the issues included in the commission's order; and
WHEREAS, under Minnesota Statutes Section 2166.25, any order of the commission
rescinding, altering, amending, or reopening a prior order shall have the same effect as an
original order; and
WHEREAS, by order on August 13, 2018, the Minnesota Public Utilities Commission adopted
an updated interconnection process for distributed energy resources replacing the standards
adopted in 2004; and
WHEREAS,the Elk River Municipal Utilities Distributed Energy Resource Interconnection
Process addresses the issues included in the commission's 2018 order; and
WHEREAS,this Distributed Energy Resource Interconnection Process functions in concert with
the Elk River Municipal Utilities Policy Regarding Distributed Energy Resources and Net
Metering as well as its Rules Governing the Interconnection of Cogeneration and Small Power
Production;
THEREFORE, BE IT RESOLVED that the Elk River Municipal Utilities Commission adopts the
attached ERMU Policy—E.12b—Cogeneration and Small Power Production Tariff, which
includes the Distributed Energy Resources Interconnection Process.
This Resolution Passed and Adopted this 14th day of May, 2019.
John J. Dietz, Chair
Troy Adams, P.E., General Manager
80
CONGENERATION AND SMALL POWER PRODUCTION TARIFF
E.12b—Cogeneration and Small Power Production Tariff
Pursuant to its Rules Governing the Interconnection of Cogeneration and Small Power
Production Facilities, Elk River Municipal Utilities ("Utility") establishes and/or updates its
Cogeneration and Small Power Production Tariff("Tariff") for billing and sales transactions
following the date of Tariff approval as follows. The Tariff shall consist of:
SCHEDULE 1.
Calculation of average retail utility energy rates.
SCHEDULE 2.
Standard contracts to be used with qualifying facilities, containing applicable terms and
conditions.
SCHEDULE 3.
Adopted interconnection process, safety standards, and technical requirements for distributed
energy resource systems, required operating procedures for interconnected operations, and
the functions to be performed by any control and protective apparatus.
SCHEDULE 4.
Estimated average incremental energy costs by seasonal, peak and off-peak periods and annual
avoided capacity costs from the utility's wholesale power supplier.
81
SCHEDULE 1-AVERAGE RETAIL UTILITY ENERGY RATE
Average Retail Utility Energy Rate: Available to any Qualifying Facility of less than 40 kW
capacity that does not select either Roll Over Credits, Simultaneous Purchase and Sale Billing or
Time of Day rates.
Utility shall bill Qualifying Facilities for any excess of energy supplied by Utility above energy
supplied by the Qualifying Facility during each billing period according to Utility's applicable
rate schedule. Utility shall pay the customer for the energy generated by the Qualifying Facility
that exceeds that supplied by Utility during a billing period at the "average retail utility energy
rate." "Average retail utility energy rate" means, for any class of utility customer, the quotient
of the total annual class revenue from sales of electricity minus the annual revenue resulting
from fixed charges, divided by the annual class kilowatt-hour sales. Data from the most recent
12-month period available shall be used in the computation.
"Average retail utility energy rates" are as follows:
Customer Class Average Retail
Utility Energy Rate
Residential $0.1281/kWh
Commercial Non Demand $0.1143/kWh
Commercial Demand $0.0629 /kWh
82
SCHEDULE 2-STANDARD CONTRACTS
I �
ABSTRACT
•
- �, --- Interconnection agreement for net energy billing DER
systems or DER systems up to 100 kW that are
compensated at avoided cost.
Minnesota Municipal Power Agency 5 kW Hometown Solar
Shakopee, MN
UNIFORM
CONTRACT
83
SCHEDULE 2-STANDARD CONTRACTS
UNIFORM CONTRACT FOR COGENERATION AND SMALL POWER
PRODUCTION FACILITIES
THIS CONTRACT is entered into , , by
, a municipal utility under Minnesota law, (hereafter called
"Utility") and (hereafter called "OF").
RECITALS
The QF has installed electric generating facilities, consisting of
(Description of facilities), rated at kilowatts AC
of electricity, on property located at
The QF is a customer of the Utility located within the assigned electric service territory of
the Utility.
The QF is prepared to generate electricity in parallel with the Utility.
The QF's electric generating facilities meet the requirements of the rules adopted by the
Utility on Cogeneration and Small Power Production and any technical standards for
interconnection the Utility has established that are authorized by those rules.
The Utility is obligated under federal and Minnesota law to interconnect with the QF and to
purchase electricity offered for sale by the QF.
A contract between the QF and the Utility is required.
AGREEMENTS
The QF and the Utility agree:
1. The Utility will sell electricity to the QF under the rate schedule in force for the class
of customer to which the QF belongs.
2. The Utility will buy electricity from the OF under the current rate schedule filed with
- of the utility. The F elects the
the citycouncil or city-appointed ointed governingbodyQ
Y pp Y
rate schedule category hereinafter indicated:
a. Average retail utility energy rate.
• QF capacity must be less than 40 kW.
1
84
SCHEDULE 2-STANDARD CONTRACTS
b. Simultaneous purchase and sale billing rate.
• QF capacity must be less than 40 kW.
c. Roll-over credits.
• QF capacity must be less than 40 kW.
d. Time-of-day purchase rates.
• QF capacity must be 40 kW or more and less than or equal to 100 kW.
A copy of the presently approved rate schedule is attached to this contract.
3. The rates for sales and purchases of electricity may change over the time this
contract is in force, due to actions of the Utility or the State of Minnesota, and the
QF and the Utility agree that sales and purchases will be made under the rates in
effect each month during the time this contract is in force.
4. The Utility will compute the charges and payments for purchases and sales for
each billing period. Any net credit to the QF, other than kilowatt-hour credits under
clause 2(c), will be made under one of the following options as chosen by the QF.
a. Credit to the QF's account with the Utility.
b. Paid by check or electronic payment service to the QF within fifteen (15)
days of the billing date.
5. Renewable energy credits associated with generation from the facility are owned
by:
6. The QF must operate its electric generating facilities within any rules, regulations,
and policies adopted by the Utility not prohibited by the rules governing
Cogeneration and Small Power Production on the Utility's system which provide
reasonable technical connection and operating specifications for the QF and are
consistent with the Minnesota Public Utilities Commission's rules on Cogeneration
and Small Power Production, as required under Minnesota Statutes §216B.164,
subdivision 9.
7. The QF will not enter into an arrangement whereby electricity from the generating
facilities will be sold to an end user in violation of the Utility's exclusive right to
provide electric service in its service area under Minnesota Statutes, §216B.37-44.
8. The QF will operate its electric generating facilities so that they conform to the
national, state, and local electric and safety codes, and will be responsible for the
costs of conformance.
2
85
SCHEDULE 2-STANDARD CONTRACTS
9. The QF is responsible for the actual, reasonable costs of interconnection which are
estimated to be $ . The QF will pay the Utility in this way:
•
10. The QF will give the Utility reasonable access to its property and electric generating
facilities if the configuration of those facilities does not permit disconnection or
testing from the Utility 's side of the interconnection. If the Utility enters the QF's
property, the Utility will remain responsible for its personnel.
11. The Utility may stop providing electricity to the QF during a system emergency. The
Utility will not discriminate against the QF when it stops providing electricity or
when it resumes providing electricity.
12. The Utility may stop purchasing electricity from the QF when necessary for the
Utility to construct, install, maintain, repair, replace, remove, investigate, or inspect
any equipment or facilities within its electric system. The Utility may stop
purchasing electricity from the QF in the event the generating facilities listed in this
contract are documented to be causing power quality, safety or reliability issues to
the Utility's electric distribution system.
The Utility will notify the QF before it stops purchasing electricity in this way:
13. The QF will keep in force general liability insurance against personal or property
damage due to the installation, interconnection, and operation of its electric
generating facilities. The amount of insurance coverage will be $
(The amount must be consistent with the distributed generation tariff adopted by
the Utility pursuant to Minnesota Statutes §216B.1611, subdivision 3, clause 2.)
14. The QF and the Utility agree to attempt to resolve all disputes arising hereunder
promptly and in a good faith manner.
15. The city council or city-appointed body governing the Utility has authority to
consider and determine disputes, if any, that arise under this contract in
accordance with procedures in the rules it adopts implementing Minnesota Statute
§216B.164, pursuant to §216B.164, subdivision 9.
16. This contract becomes effective as soon as it is signed by the QF and the Utility.
This contract will remain in force until either the QF or the Utility gives written notice
to the other that the contract is canceled. This contract will be canceled thirty (30)
days after notice is given. If the listed electric generating facilities are not
3
86
SCHEDULE 2-STANDARD CONTRACTS
interconnected to the Utility's distribution system within twelve months of the
contract being signed by the QF and the Utility, the contract terminates. The QF
and the Utility may delay termination by mutual agreement.
17. Neither the QF nor the Utility will be considered in default as to any obligation if the
QF or the Utility is prevented from fulfilling the obligation due to an act of God, labor
disturbance, act of public enemy, war, insurrection, riot, fire, storm or flood,
explosion, breakage or accident to machinery or equipment, an order, regulation or
restriction imposed by governmental, military or lawfully established civilian
authorities, or other cause beyond the QF's or Utility's control. However, the QF or
Utility whose performance under this contract is hindered by such an event shall
make all reasonable efforts to perform its obligations.
18. This contract can only be amended or modified by mutual agreement in writing
signed by the QF and the Utility.
19. The QF must notify the Utility prior to any change in the electric generating
facilities' capacity size or generating technology according to the interconnection
process adopted by the Utility.
20. Termination of this contract is allowed (i) by the QF at any time without restriction;
(ii) by Mutual Agreement between the Utility and the QF; (iii) upon abandonment or
removal of electric generating facilities by the QF; (iv) by the Utility if the electric
generating facilities are continuously non-operational for any twelve (12)
consecutive month period; (v) by the Utility if the QF fails to comply with applicable
interconnection design requirements or fails to remedy a violation of the
interconnection process; or (vi) by the Utility upon breach of this contract by the QF
unless cured with notice of cure received by the Utility prior to termination.
21. In the event this contract is terminated, the Utility shall have the rights to disconnect
its facilities or direct the QF to disconnect its generating facilities.
22. This contract shall continue in effect after termination to the extent necessary to
allow either the Utility or the QF to fulfill rights or obligations that arose under the
contract.
23. Transfer of ownership of the generating facilities shall require the new owners and
the Utility to execute a new contract. Upon the execution of a new contract with the
new owners this contract shall be terminated.
24. The QF and the Utility shall at all times indemnify, defend, and save each other
harmless from any and all damages, losses, claims, including claims and actions
relating to injury or death of any person or damage to property, costs and
expenses, reasonable attorneys' fees and court costs, arising out of or resulting
from the QF's or the Utility's performance of its obligations under this contract,
4
87
SCHEDULE 2-STANDARD CONTRACTS
except to the extent that such damages, losses or claims were caused by the
negligence or intentional acts of the QF or the Utility.
25. The Utility and the QF will each be responsible for its own acts or omissions and
the results thereof to the extent authorized by law and shall not be responsible for
the acts or omissions of any others and the results thereof.
26. The QF's and the Utility's liability to each other for failure to perform its obligations
under this contract shall be limited to the amount of direct damage actually
occurred. In no event, shall the QF or the Utility be liable to each other for any
punitive, incidental, indirect, special, or consequential damages of any kind
whatsoever, including for loss of business opportunity or profits, regardless of
whether such damages were foreseen.
27. The Utility does not give any warranty, expressed or implied, to the adequacy,
safety, or other characteristics of the QF's interconnected system.
28. This contract contains all the agreements made between the QF and the Utility.
The QF and Utility are not responsible other than those stated in this contract.
THE QF AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE TO BE
BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY HAVE EACH
SIGNED THIS CONTRACT BELOW ON THE DATE LISTED BY SIGNER.
QF
By:
Printed Name:
DATE:
UTILITY
By:
Printed Name:
DATE:
Contract Version: February 2019
5
88
SCHEDULE 2-STANDARD CONTRACTS
uu
r =7".1-1 - a aiisAsslasik 0, ,
_L'i h a�a ` i.�1 ,..5►i1\ityc pia
/���'�'�1an�'l��� ` \���s1\����'��\\\1\1\lit
se, ,,,,,4„,....,
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• . .
ABSTRACT
For use in lieu of the Utility's Uniform Contract
Minnesota Municipal Power Agency's 7 MW Buffalo Solar
Buffalo, MN
INTERCONNECTION
AGREEMENT
89
SCHEDULE 2-STANDARD CONTRACTS
Contents
i. Contact Information 1
1 Scope and Limitations of Agreement 2
2 Responsibilities of the Parties 3
3 Parallel Operation Obligations 4
4 Metering 4
5 Distributed Energy Resource Capabilities and Grid Reliability 4
6 Equipment Testing and Inspection 5
7 Authorization Required Prior to Parallel Operation 5
8 Right of Access 5
9 Effective Date 6
10 Term of Agreement 6
11 Termination 6
12 Temporary Disconnection 6
13 Cost Responsibility for Interconnection Facilities and Distribution Upgrades 8
14 Cost Responsibility for Network Upgrades 9
15 Billing, Payment, Milestones, and Financial Security 11
16 Assignment, Force Majeure, Consequential Damages, and Default 12
17 Limitations of Liability 12
18 Non-Warranty 13
19 Indemnity 13
20 Consequential Damages 14
21 Force Majeure 14
22 Default 15
23 Insurance 15
24 Confidentiality 16
25 Disputes 17
26 Taxes 17
27 Miscellaneous 17
28 Notices 20
90
SCHEDULE 2-STANDARD CONTRACTS
31 Signatures 24
Attachment I: Glossary of Terms 25
Attachment II: Description and Costs of the Distributed Energy Resource, Interconnection
Facilities, and Metering Equipment 31
Attachment III: One-line Diagram Depicting the Distributed Energy Resource, Interconnection
Facilities, and Metering Equipment, and Upgrades 32
Attachment IV: Milestones 33
Attachment V: Additional Operating and Maintenance Requirements for the Area EPS
Operator's Distribution System and Affected Systems Need to Support the Interconnection
Customer's Needs 35
Attachment VI: Area EPS Operator's Description of Distribution and Network Upgrades and
Good Faith Estimates of Upgrade Costs 36
Attachment VII: Assignment of Interconnection Agreement 37
ii
91
SCHEDULE 2-STANDARD CONTRACTS
i. Contact Information
Contact information for each Party is listed below along with the basic information describing
the Distributed Energy Resource (DER) system.
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
DER System Information
Application Number:
Type of DER System:
Capacity Rating of System (AC):
Limited Capacity Rating (AC):
Address of DER System:
Municipal Minnesota Interconnection Agreement_January 2019
92
SCHEDULE 2-STANDARD CONTRACTS
THIS AGREEMENT is made and entered into this day of 20 by and
between , ("Interconnection
Customer"), and , a municipal utility
existing under the laws of the State of Minnesota, ("Area EPS Operator"). Interconnection
Customer and Area EPS Operator each may be referred to as a "Party," or collectively as the
"Parties."
In consideration of the mutual covenants set forth herein, the Parties agree as follows:
1 Scope and Limitations of Agreement
1.1. This Agreement is intended to provide for the Interconnection Customer to
interconnect at the Point of Common Coupling and operate a Distributed Energy
Resource with a Nameplate Rating of 10 Megawatts (MW) or less in parallel with the
Area EPS at the location identified above and in the Interconnection Application.
1.2. This Agreement shall be used for all Interconnection Applications submitted under
the Municipal Minnesota Distributed Energy Resources Interconnection Process (M-
MIP) except for those Interconnection Applications that qualify and choose for the
Uniform Contract to replace the need for this Agreement.
1.3. This Agreement governs the terms and conditions under which the Interconnection
Customer's Distributed Energy Resource will interconnect with, and operate in
parallel with, the Area EPS Operator's Distribution System.
1.4. Capitalized terms used herein shall have the meanings specified in the Glossary of
Terms in Attachment 1, the M-MIP, or the body of this Agreement.
1.5. This Agreement does not constitute an agreement to purchase or deliver the
Interconnection Customer's power.The purchase or delivery of power and other
services that the Interconnection Customer may require will be covered under
separate agreements, if any. The Interconnection Customer will be responsible for
separately making all necessary arrangements (including schedu
ling)for delivery of
electricity with the applicable Area EPS Operator.
1.6. Nothingin this Agreement is intended to affect anyother agreement between the
g g
Area EPS Operator and the Interconnection Customer.
Municipal Minnesota Interconnection Agreement_ January 2019 2
93
SCHEDULE 2-STANDARD CONTRACTS
2 Responsibilities of the Parties
2.1. The Parties shall perform all obligations of this Agreement in accordance with the M-
MIP, Minnesota Technical Requirements, all Applicable Laws and Regulations,
Operating Requirements, and Good Utility Practice.
2.2. The Interconnection Customer shall construct, interconnect, operate and maintain
its Distributed Energy Resource and construct, operate, and maintain its
Interconnection Facilities in accordance with the applicable manufacturer's
recommended maintenance schedule and, in accordance with this Agreement, and
with Good Utility Practice.
2.3. The Area EPS Operator shall construct, operate, and maintain its Distribution System
and its Interconnection Facilities in accordance with this Agreement, and with Good
Utility Practice.
2.4. The Interconnection Customer agrees to construct its facilities or systems in
accordance with the Minnesota Technical Requirements and this Agreement;
including, applicable specifications that meet or exceed those provided by the
National Electrical Safety Code, the American National Standards Institute, Institute
of Electrical and Electronics Engineers (IEEE), Underwriter's Laboratory (UL), and
Operating Requirements in effect at the time of construction and other applicable
national and state codes and standards.The Interconnection Customer agrees to
design, install, maintain, and operate its Distributed Energy Resource so as to
reasonably minimize the likelihood of a disturbance adversely affecting or impairing
the system or equipment of the Area EPS Operator and any Affected Systems.
2.5. Each Party shall operate, maintain, repair, and inspect, and shall be fully responsible
for the facilities that it now owns or subsequently owns unless otherwise specified in
the Attachments to this Agreement. Each Party shall be responsible for the safe
installation, maintenance, repair and condition of their respective lines and
appurtenances on their respective sides of the point of common coupling.The Area
EPS Operator and the Interconnection Customer, as appropriate, shall provide
Interconnection Facilities that adequately protect the Area EPS Operator's
Distribution System, personnel, and other persons from damage and injury.The
allocation of responsibility for the design, installation, operation, maintenance and
ownership of Interconnection Facilities shall be delineated in the Attachments to
this Agreement.
2.6. The Area EPS Operator shall coordinate with all Affected Systems to support the
interconnection.
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3 Parallel Operation Obligations
3.1. Once the Distributed Energy Resource has been authorized to commence parallel
operation, the Interconnection Customer shall abide by all rules and procedures
pertaining to the parallel operation of the Distributed Energy Resource in the
applicable control area, including, but not limited to; 1) the rules and procedures
concerning the operation of generation set forth by the applicable system
operator(s) for the Area EPS Operator's Distribution System provided or referenced
in an attachment to this Agreement and; 2)the Operating Requirements set forth in
Attachment 5 of this Agreement. The Minnesota Technical Requirements for
interconnection are covered in a separate document, a copy of which has been
made available to the Interconnection Customer and incorporated and made part of
this Agreement by this reference.
4 Metering
4.1. As described in M-MIP Overview Process Section 9.1, the Interconnection Customer
shall be responsible for the Area EPS Operator's reasonable and necessary cost for
the purchase, installation, operation, maintenance, testing, repair, and replacement
of metering and data acquisition equipment specified in Attachments 2 and 3 of this
Agreement. The Interconnection Customer's metering (and data acquisition, as
required) equipment shall conform to applicable industry rules and Operating
Requirements.
5 Distributed Energy Resource Capabilities and Grid Reliability
5.1. The Minnesota Technical Requirements outlines the Parties responsibilities
consistent with IEEE 1547 Standard for Interconnection and Interoperability of
Distributed Energy Resources with Associated Electric Power Systems Interfaces
which provides requirements relevant to the interconnection and interoperability
performance, operation and testing, and, to safety, maintenance and security
considerations.
5.2. The Area EPS Operator may offer the Interconnection Customer the option to utilize
required DER capabilities to mitigate Interconnection Customer costs related to
Upgrades or Interconnection Facilities to address anticipated system impacts from
the engineering review (i.e. Initial Review, Supplemental Review, or Study Process
described in the M-MIP.)
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6 Equipment Testing and Inspection
6.1. As described in M-MIP Overview Process Section 9.3, the Interconnection Customer
shall test and inspect its Distributed Energy Resource and Interconnection Facilities
prior to interconnection pursuant to Minnesota Technical Requirements and this
Agreement.
7 Authorization Required Prior to Parallel Operation
7.1. As described in M-MIP Overview Process Section 9.5, the Area EPS Operator shall
use Reasonable Efforts to list applicable parallel operation requirements by
attaching the Minnesota Technical Requirements and/or including them in
Attachment 5 to this Agreement. Additionally, the Area EPS Operator shall notify the
Interconnection Customer of any changes to these requirements as soon as they are
known. Pursuant to the M-MIP Overview Process Section 8.5, the Interconnection
Customer shall not operate its Distributed Energy Resource in parallel with the Area
EPS Operator's Distribution System without prior written authorization of the Area
EPS Operator.
8 Right of Access
8.1. Upon reasonable notice, the Area EPS Operator may send a qualified person to the
premises of the Interconnection Customer at or immediately before the time the
Distributed Energy Resource first produces energy to inspect the interconnection,
and observe the commissioning of the Distributed Energy Resource (including any
required testing), startup, and operation for a period of up to three (3) Business
Days after initial start-up of the unit. In addition, the Interconnection Customer shall
notify the Area EPS Operator at least five (5) Business Days prior to conducting any
on-site verification testing of the Distributed Energy Resource.
8.2. Following the initial inspection process described above, at reasonable hours, and
upon reasonable notice, or at any time without notice in the event of an emergency
or hazardous condition, the Area EPS Operator shall have access to the
Interconnection Customer's premises for any reasonable purpose in connection with
the performance of the obligations imposed on it by this Agreement or if necessary
to meet its legal obligation to provide service to its customers.
8.3. Each Party shall be responsible for its costs associated with the interconnection of
the DER system as outlined in M-MIP Overview Process Section 9.3 and the
Minnesota Technical Requirements.
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9 Effective Date
9.1 This Agreement shall become effective upon execution by the Parties.
10 Term of Agreement
10.1. This Agreement shall become effective on the Effective Date and shall remain in
effect from the Effective Date unless terminated earlier in accordance with Section
11 of this Agreement.
11 Termination
11.1. No termination shall become effective until the Parties have complied with all
Applicable Laws and Regulations applicable to such termination.
11.2. The Interconnection Customer may terminate this Agreement at any time by giving
the Area EPS Operator twenty (20) Business Days written notice.
11.3. The Area EPS Operator may terminate this Agreement if the listed electric
generating facilities are not interconnected to the Area EPS Operator's distribution
system within thirty-six (36) months of this Agreement signed by the Parties. The
Parties may choose to delay termination by mutual agreement.
11.4. Either Party may terminate this Agreement after Default pursuant to Section 3.
11.5. Upon termination of this Agreement, the Distributed Energy Resource will be
disconnected from the Area EPS Operator's Distribution System. All costs required to
effectuate such disconnection shall be borne by the terminating Party, unless such
termination resulted from the non-terminating Party's Default of this Agreement or
such non-terminating Party otherwise is responsible for these costs under this
Agreement.
11.6. The termination of this Agreement shall not relieve either Party of its liabilities and
obligations, owed or continuing at the time of the termination.
11.7. The provisions of this article shall survive termination or expiration of this
Agreement.
12 Temporary Disconnection
12.1.Temporary disconnection shall continue only for so long as reasonably necessary
under Good Utility Practice.
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12.2. Emergency Conditions. Under emergency conditions, the Area EPS Operator may
immediately suspend interconnection service and temporarily disconnect the
Distributed Energy Resource. The Area EPS Operator shall use Reasonable Efforts to
notify the Interconnection Customer promptly when it becomes aware of an
Emergency Condition that may reasonably be expected to affect the Interconnection
Customer's operation of the Distributed Energy Resource. The Interconnection
Customer shall use Reasonable Efforts to notify the Area EPS Operator promptly
when it becomes aware of an Emergency Condition that may reasonably be expected
to affect the Area EPS Operator's Distribution System or any Affected Systems.To the
extent information is known, the notification shall describe the Emergency Condition,
the extent of the damage or deficiency, the expected effect on the operation of both
Parties' facilities and operations, its anticipated duration, and the necessary
corrective action.
12.3.Temporary Interruption. The Area EPS Operator may interrupt interconnection
service or curtail the output of the Distributed Energy Resource and temporarily
disconnect the Distributed Energy Resource from the Area EPS Operator's
Distribution System when necessary for routine maintenance, construction, or repairs
on the Area EPS Operator's Distribution System.The Area EPS Operator shall use
Reasonable Efforts to provide the Interconnection Customer with three (3) Business
Days' notice prior to such interruption. The Area EPS Operator shall use Reasonable
Efforts to coordinate such reduction or temporary disconnection with the
Interconnection Customer.
12.4. Forced Outage. During any forced outage, the Area EPS Operator may suspend
interconnection service to effect immediate repairs on the Area EPS Operator's
Distribution System. The Area EPS Operator shall use Reasonable Efforts to provide
the Interconnection Customer with prior notice. If prior notice is not given, the Area
EPS Operator shall, upon request, provide the Interconnection Customer written
documentation after the fact explaining the circumstances of the disconnection.
12.5. Adverse Operating Effects. The Area EPS Operator shall notify the Interconnection
Customer as soon as practicable if, based on Good Utility Practice, operation of the
Distributed Energy Resource may cause disruption or deterioration of service to other
customers served from the same electric system, or if operating the Distributed
Energy Resource could cause damage to the Area EPS Operator's Distribution System
or Affected Systems. Supporting documentation used to reach the decision to
disconnect shall be provided to the Interconnection Customer upon request. If, after
notice, the Interconnection Customer fails to remedy the adverse operating effect
within a reasonable time, the Area EPS Operator may disconnect the Distributed
Energy Resource.The Area EPS Operator shall provide the Interconnection Customer
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with five Business Day notice of such disconnection, unless the provisions of Section
12.2 apply.
12.6. Modification of the Distributed Energy Resource. The Interconnection Customer must
receive written authorization from the Area EPS Operator before making any change
to the Distributed Energy Resource that may have a material impact on the safety or
reliability of the Distribution System. Such authorization shall not be unreasonably
withheld if the modification is not a Material Modification. Material Modifications,
including an increase Nameplate Rating or capacity, may require the Interconnection
Customer to submit a new Interconnection Application as described in the M-MIP
Overview Process Section 7. If the Interconnection Customer makes such
modification without the Area EPS Operator's prior written authorization, the latter
shall have the right to temporarily disconnect the Distributed Energy Resource.
12.7. Reconnection. The Parties shall cooperate with each other to restore the Distributed
Energy Resource, Interconnection Facilities, and the Area EPS Operator's Distribution
System to their normal operating state as soon as reasonably practicable following a
temporary disconnection.
12.8.Treatment Similar to Other Retail Customers. If the Interconnection Customer
receives retail electrical service at the same site as the Distributed Energy Resource, it
may also be disconnected consistent with the rules and practices for disconnecting
other retail electrical customer.
12.9. Disconnection for Default. If the Interconnection Customer is in Default of this
Agreement, it may be disconnected after a sixty (60) day written notice is provided
and the Default is not cured during this sixty (60) day notice. This provision does not
apply to disconnection based on Sections 12.2, 12.3, 12.4 or 12.5 of this Agreement.
13 Cost Responsibility for Interconnection Facilities and Distribution
Upgrades
13.1 Interconnection Facilities.The Interconnection Customer shall pay for the cost of the
Interconnection Facilities itemized in Attachment 2 of this Agreement. The Area EPS
Operator shall provide a good faith estimate cost, including overheads, for the
purchase and construction of its Interconnection Facilities and provide a detailed
itemization of such costs. Costs associated with Interconnection Facilities may be
shared with other entities that may benefit from such facilities by agreement of the
Interconnection Customer, such other entities, and the Area EPS Operator.
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13.2 The Interconnection Customer shall be responsible for its share of all reasonable
expenses, including overheads, associated with (1) owning, operating, maintaining,
repairing, and replacing its own Interconnection Facilities, and (2) operating,
maintaining, repairing, and replacing the Area EPS Operator's Interconnection
Facilities.
13.3 Distribution Upgrades. The Area EPS Operator shall design, procure, construct, install,
and own the Distribution Upgrades described in Attachment 6 of this Agreement. The
Area EPS Operator shall provide a good faith estimate cost, including overheads, for
the purchase and construction of the Distribution Upgrades and provide a detailed
itemization of such costs. If the Area EPS Operator and the Interconnection Customer
agree, the Interconnection Customer may construct Distribution Upgrades that are
located on land owned by the Interconnection Customer.The actual cost of the
Distribution Upgrades, including overheads, shall be directly assigned to the
Interconnection Customer.
14 Cost Responsibility for Network Upgrades
14.1. Applicability. No portion of Section 14 shall apply unless the interconnection of the
Distributed Energy Resource requires Network Upgrades.
14.2. Network Upgrades.The Area EPS Operator or the Transmission Owner shall design,
procure, construct, install, and own the Network Upgrades described in Attachment 6
of this Agreement.The Area EPS Operator shall provide a good faith estimate cost,
including overheads, for the purchase and construction of the Network Upgrades and
provide a detailed itemization of such costs. If the Area EPS Operator and the
Interconnection Customer agree, the Interconnection Customer may construct
Network Upgrades that are located on land owned by the Interconnection Customer.
Unless the Area EPS Operator elects to pay for Network Upgrades, the actual cost of
the Network Upgrades, including overheads, shall be borne initially by the
Interconnection Customer.
14.3. Repayment of Amounts Advanced for Network Upgrades. The Interconnection
Customer shall be entitled to a cash repayment, equal to the total amount paid to the
Area EPS Operator and Affected System operator, if any, for Network Upgrades,
including any tax gross-up or other tax-related payments associated with the
Network Upgrades, and not otherwise refunded to the Interconnection Customer, to
be paid to the Interconnection Customer on a dollar-for-dollar basis for the non-
usage sensitive portion of transmission charges, as payments are made under the
Area EPS Operator's Tariff and Affected System's Tariff for transmission services with
respect to the Distributed Energy Resource. Any repayment shall include interest
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calculated in accordance with the methodology set forth in Federal Energy Regulatory
Commission's (FERC's) regulations at 18 C.F.R. § 35.19a(a)(2)(iii) from the date of any
payment for Network Upgrades through the date on which the Interconnection
Customer receives a repayment of such payment pursuant to this subparagraph. The
Interconnection Customer may assign such repayment rights to any person.
14.4. Notwithstanding the foregoing, the Interconnection Customer, the Area EPS
Operator, and any applicable Affected System operators may adopt any alternative
payment schedule that is mutually agreeable so long as the Area EPS Operator and
said Affected System operators take one of the following actions no later than five
years from the Commercial Operation Date: (1) return to the Interconnection
Customer any amounts advanced for Network Upgrades not previously repaid, or (2)
declare in writing that the Area EPS Operator or any applicable Affected System
operators will continue to provide payments to the Interconnection Customer on a
dollar-for-dollar basis for the non-usage sensitive portion of transmission charges, or
develop an alternative schedule that is mutually agreeable and provides for the
return of all amounts advanced for Network Upgrades not previously repaid;
however, full reimbursement shall not extend beyond 20 years from the commercial
operation date.
14.5. If the Distributed Energy Resource fails to achieve commercial operation, but it or
another Distributed Energy Resource is later constructed and requires use of the
Network Upgrades, the Area EPS Operator and Affected System operator shall at that
time reimburse the Interconnection Customer for the amounts advanced for the
Network Upgrades. Before any such reimbursement can occur, the Interconnection
Customer, or the entity that ultimately constructs the Distributed Energy Resource, if
different, is responsible for identifying the entity to which reimbursement must be
made.
14.6. Special Provisions for Affected Systems. Unless the Area EPS Operator provides,
under this Agreement, for the repayment of amounts advanced to any applicable
Affected System operators for Network Upgrades, the Interconnection Customer and
Affected System operator shall enter into an agreement that provides for such
repayment. The agreement shall specify the terms governing payments to be made
by the Interconnection Customer to Affected System operator as well as the
repayment by Affected System Operator.
14.7. Rights Under Other Agreements. Notwithstanding any other provision of this
Agreement, nothing herein shall be construed as relinquishing or foreclosing any
rights, including but not limited to firm transmission rights, capacity rights,
transmission congestion rights, or transmission credits, that the Interconnection
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Customer shall be entitled to, now or in the future, under any other agreement or
tariff as a result of, or otherwise associated with, the transmission capacity, if any,
created by the Network Upgrades, including the right to obtain cash reimbursements
or transmission credits for transmission service that is not associated with the
Distributed Energy Resource.
15 Billing, Payment, Milestones, and Financial Security
15.1. Billing and Payment Procedures and Final Accounting. The Area EPS Operator shall bill
the Interconnection Customer for the design, engineering, construction, and
procurement costs of Interconnection Facilities and Upgrades contemplated by this
Agreement, and the Interconnection Customer shall pay each bill, pursuant to the M-
MIP Interconnection Process documents, or as otherwise agreed to by the Parties.
15.2. Within 80 Business Days (approximately 4 calendar months) of completing the
construction and installation of the Area EPS Operator's Interconnection Facilities
and/or Upgrades described in the Attachments to this Agreement, the Area EPS
Operator shall provide the Interconnection Customer with a final accounting report,
as described in the M-MIP Fast Track Process Section 9.4.3 and the Study Process
Section 11.4.3.
15.3. Milestones. Pursuant to the M-MIP Fast Track Process Section 9.1 and the Study
Process Section 11.1, the Parties shall agree on milestones for which each Party is
responsible and list them in Attachment 4 of this Agreement.
15.4. Financial Security Arrangements. Pursuant to the M-MIP Fast Track Process Section
9.5 and the Study Process Section 11.5, the Interconnection Customer shall provide
the Area EPS Operator, at the Interconnection Customer's option, a guarantee, letter
of credit or other form of security that is reasonably acceptable to the Area EPS
Operator and is consistent with the Minnesota Uniform Commercial Code. Such
security for payment shall be in an amount sufficient to cover the costs for
constructing, designing, procuring, and installing the applicable portion of the Area
EPS Operator's Interconnection Facilities and Upgrades and shall be reduced on a
dollar-for-dollar basis for payments made to the Area EPS Operator under this
Agreement during its term. In addition:
15.4.1. The guarantee must be made by an entity that meets the creditworthiness
requirements of the Area EPS Operator, and contain terms and conditions
that guarantee payment of any amount that may be due from the
Interconnection Customer, up to an agreed-to maximum amount.
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15.4.2. The letter of credit must be issued by a financial institution or insurer
reasonably acceptable to the Area EPS Operator and must specify a
reasonable expiration not sooner than sixty (60) Business Days (three
calendar months) after the due date for the issuance of the final bill.
16 Assignment, Force Majeure, Consequential Damages, and Default
16.1. This Agreement may be assigned by either Party upon 15 Business Days prior written
notice and opportunity to object by the other Party; provided that:
16.1.1. Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit
rating and with the legal authority and operational ability to satisfy the
obligations of the assigning Party under this Agreement, provided that the
Interconnection Customer promptly notifies the Area EPS Operator of any
such assignment.
16.1.2. Interconnection Customer shall have the right to assign this Agreement,
without the consent of the Area EPS Operator, for collateral security
purposes to aid in providing financing for the Distributed Energy Resource,
provided that the Interconnection Customer will promptly notify the Area
EPS Operator of any such assignment.
16.1.3. Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's
obligations be enlarged, in whole or in part, by reason thereof. An assignee
is responsible for meeting the same financial, credit, and insurance
obligations as the Interconnection Customer. Where required, consent to
assignment will not be unreasonably withheld, conditioned or delayed.
17 Limitations of Liability
17.1. Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or
expense, including reasonable attorney's fees, relating to or arising from any act or
omission in its performance of this Agreement, shall be limited to the amount of
direct damage actually incurred. In no event shall either Party be liable to the other
Party for any indirect, special, consequential, or punitive damages, except as
authorized by this Agreement.
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18 Non-Warranty
18.1. The Area EPS Operator does not give any warranty, expressed or implied, as to the
adequacy, safety, or other characteristics of any structures, equipment, wires,
appliances or devices owned, installed or maintained by the Interconnection
Customer, including without limitation the Distributed Energy Resource and any
structures, equipment, wires, appliances or devices not owned, operated or
maintained by the Area EPS Operator.
19 Indemnity
19.1. This provision protects each Party from liability incurred to third parties as a result of
carrying out the provisions of this Agreement. Liability under this provision is exempt
from the general limitations on liability found in Section 17.
19.2. The Parties shall at all times indemnify, defend, and hold the other Party harmless
from, any and all damages, losses, claims, including claims and actions relating to
injury to or death of any person or damage to property, demand, suits, recoveries,
costs and expenses, court costs, attorney fees, and all other obligations by or to third
parties, arising out of or resulting from the other Party's action or failure to meet its
obligations under this Agreement on behalf of the indemnifying Party, except in cases
of gross negligence or intentional wrongdoing by the indemnified Party.
19.3. If an indemnified person is entitled to indemnification under this article as a result of
a claim by a third party, and the indemnifying Party fails, after notice and reasonable
opportunity to proceed under this article, to assume the defense of such claim, such
indemnified person may at the expense of the indemnifying Party contest, settle or
consent to the entry of any judgment with respect to, or pay in full, such claim.
19.4. If an indemnifying party is obligated to indemnify and hold any indemnified person
harmless under this article, the amount owing to the indemnified person shall be the
amount of such indemnified person's actual loss, net of any insurance or other
recovery.
19.5. Promptly after receipt by an indemnified person of any claim or notice of the
commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified
person shall notify the indemnifying party of such fact. Any failure of or delay in such
notification shall not affect a Party's indemnification obligation unless such failure or
delay is materially prejudicial to the indemnifying party.
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19.6. This indemnification obligation shall apply notwithstanding any negligent or
intentional acts, errors or omissions of the Indemnified Party, but the Indemnifying
Party's liability to indemnify the Indemnifying Party shall be reduced in proportion to
the percentage by which the Indemnified Party's negligent or intentional acts, errors
or omissions caused damaged.
19.7. Neither Party shall be indemnified for its damages resulting from its sole negligence,
intentional acts or willful misconduct. These indemnity provisions shall not be
construed to relieve any insurer of its obligation to pay claims consistent with the
provisions of a valid insurance policy.
20 Consequential Damages
20.1. Other than as expressly provided for in this Agreement, neither Party shall be liable
under any provision of this Agreement for any losses, damages, costs or expenses for
any special, indirect, incidental, consequential, or punitive damages, including but not
limited to loss of profit or revenue, loss of the use of equipment, cost of capital, cost
of temporary equipment or services, whether based in whole or in part in contract, in
tort, including negligence, strict liability, or any other theory of liability; provided,
however, that damages for which a Party may be liable to the other Party under
another agreement will not be considered to be special, indirect, incidental, or
consequential damages hereunder.
21 Force Majeure
21.1. If a Force Majeure Event prevents a Party from fulfilling any obligations under this
Agreement, the Party affected by the Force Majeure Event (Affected Party) shall
promptly notify the other Party, either in writing or via the telephone, of the
existence of the Force Majeure Event.The notification must specify in reasonable
detail the circumstances of the Force Majeure Event, its expected duration, and the
steps that the Affected Party is taking to mitigate the effects of the event on its
performance.The Affected Party shall keep the other Party informed on a continuing
basis of developments relating to the Force Majeure Event until the event ends.The
Affected Party will be entitled to suspend or modify its performance of obligations
under this Agreement (other than the obligation to make payments) only to the
extent that the effect of the Force Majeure Event cannot be mitigated by the use of
Reasonable Efforts.The Affected Party will use Reasonable Efforts to resume its
performance as soon as possible.
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22 Default
22.1. No Default shall exist where such failure to discharge an obligation (other than the
payment of money) is the result of a Force Majeure Event as defined in this
Agreement or the result of an act or omission of the other Party. Upon a Default, the
non-defaulting Party shall give written notice of such Default to the defaulting Party.
Except as provided in Section 21, the defaulting Party shall have sixty(60) calendar
days from receipt of the Default notice within which to cure such Default; provided
however, if such Default is not capable of cure within sixty (60) calendar days, the
defaulting Party shall commence such cure within twenty(20) calendar days after
notice and continuously and diligently complete such cure within six (6) months from
receipt of the Default notice; and, if cured within such time, the Default specified in
such notice shall cease to exist.
22.2. If a Default is not cured as provided in this article, or if a Default is not capable of
being cured within the period provided for herein, the non-defaulting Party shall have
the right to terminate this Agreement by written notice at any time until cure occurs,
and be relieved of any further obligation hereunder and, whether or not that Party
terminates this Agreement, to recover from the defaulting Party all amounts due
hereunder, plus all other damages and remedies to which it is entitled at law or in
equity. The provisions of this article will survive termination of this Agreement.
23 Insurance
23.1. An Area EPS Operator may only require an Interconnection Customer to purchase
insurance covering damages pursuant to the applicable M-MIP process document in
which the distributed energy resource falls under.
23.2. The Area EPS Operator agrees to maintain general liability insurance or self-insurance
consistent with the Area EPS Operator's commercial practice. Such insurance or self-
insurance shall not exclude coverage for the Area EPS Operator's liabilities
undertaken pursuant to this Agreement.
23.3. The Parties further agree to notify each other whenever an accident or incident
occurs resulting in any injuries or damages that are included within the scope of
coverage of such insurance, whether or not such coverage is sought.
23.4. Failure of the Interconnection Customer or Area EPS Operator to enforce the
minimum levels of insurance does not relieve the Interconnection Customer from
maintaining such levels of insurance or relieve the Interconnection Customer of any
liability.
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24 Confidentiality
24.1. Confidential Information shall mean any confidential and/or proprietary information
provided by one Party to the other Party that is clearly marked or otherwise
designated "Confidential." For purposes of this Agreement, design, operating
specifications, and metering data provided by the Interconnection Customer may be
deemed Confidential Information regardless of whether it is clearly marked or
otherwise designated as such. If requested by either Party, the other Party shall
provide in writing the basis for asserting that the information warrants confidential
treatment. Parties providing a Governmental Authority trade secret, privileged or
otherwise not public data under Minnesota Government Data Privacy Act, Minnesota
Statutes Chapter 13, must provide information consistent with the Commission's
September 1, 1999 Revised Procedures for Handling Trade Secret and Privileged Data.
24.2. Confidential Information does not include information previously in the public
domain with proper authorization, required to be publicly submitted or divulged by
Governmental Authorities (after notice to the other Party and after exhausting any
opportunity to oppose such publication or release), or necessary to be publicly
divulged in an action to enforce this Agreement. Each Party receiving Confidential
Information shall hold such information in confidence and shall not disclose it to any
third party nor to the public without the prior written authorization from the Party
providing that information, except to fulfill obligations under this Agreement, or to
fulfill legal or regulatory requirements that could not otherwise be fulfilled by not
making the information public.
24.3. Each Party shall hold in confidence and shall not disclose Confidential Information, to
any person (except employees, officers, representatives and agents, who agree to be
bound by this section). Confidential Information shall be clearly marked as such on
each page or otherwise affirmatively identified. If a court, government agency or
entity with the right, power, and authority to do so, requests or requires either Party,
by subpoena, oral disposition, interrogatories, requests for production of documents,
administrative order, or otherwise, to disclose Confidential Information, that Party
shall provide the other Party with prompt notice of such request(s) or
requirements(s) so that the other Party may seek an appropriate protective order or
waive compliance with the terms of this Agreement. In the absence of a protective
order or waiver the Party shall disclose such confidential information which, in the
opinion of its counsel, the party is legally compelled to disclose. Each Party will use
reasonable efforts to obtain reliable assurance that confidential treatment will be
accorded any confidential information so furnished.
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24.4. Critical infrastructure information or information that is deemed or otherwise
designated by a Party as Critical Energy/Electric Infrastructure Information (CEII)
pursuant to FERC regulation 18 C.F.R. §388.133, as may be amended from time to
time, may be subject to further protections for disclosure as required by FERC or
FERC regulations or orders and the disclosing Party's CEII policies.
24.5. Each Party shall employ at least the same standard of care to protect Confidential
Information obtained from the other Party as it employs to protect its own
Confidential Information.
24.6. Each Party is entitled to equitable relief, by injunction or otherwise, to enforce its
rights under this provision to prevent the release of Confidential Information without
bond or proof of damages, and may seek other remedies available at law or in equity
for breach of this provision.
25 Disputes
The Parties agree in a good faith effort to attempt to resolve all disputes arising out of
the interconnection process and associated study and Interconnection Agreements.
The Parties agree to follow the established dispute resolution policy adopted by the
Area EPS Operator.
26 Taxes
26.1. The Parties agree to follow all applicable tax laws and regulations, consistent with
Internal Revenue Service and any other relevant local, state and federal
requirements.
26.2. Each Party shall cooperate with the other to maintain the other Party's tax status. It is
incumbent on the Party seeking to maintain its tax status to provide formal written
notice to the other Party detailing what exact cooperation it is seeking from the other
Party well prior to any deadlines by which any such action would need to be taken.
Nothing in this Agreement is intended to adversely affect, if applicable, the Area EPS
Operator's tax-exempt status with respect to the issuance of bonds including, but not
limited to, local furnishing bonds.
27 Miscellaneous
27.1. Governing Law, Regulatory Authority, and Rules.The validity, interpretation and
enforcement of this Agreement and each of its provisions shall be governed by the
Area EPS Operator's board of directors and the laws of the state of Minnesota,
without regard to its conflicts of law principles. This Agreement is subject to all
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Applicable Laws and Regulations. Each Party expressly reserves the right to seek
changes in, appeal, or otherwise contest any laws, orders, or regulations of a
Governmental Authority.
27.2. Amendment. The Parties may amend this Agreement by a written instrument duly
executed by both Parties, or under Section 27.12 of this Agreement.
27.3. No Third-Party Beneficiaries.This Agreement is not intended to and does not create
rights, remedies, or benefits of any character whatsoever in favor of any persons,
corporations, associations, or entities other than the Parties, and the obligations
herein assumed are solely for the use and benefit of the Parties, their successors in
interest and where permitted, their assigns.
27.4. Waiver. The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement will not be considered a waiver of
any obligation, right, or duty of, or imposed upon, such Party. Any waiver at any time
by either Party of its rights with respect to this Agreement shall not be deemed a
continuing waiver or a waiver with respect to any other failure to comply with any
other obligation, right, duty of this Agreement.Termination or default of this
Agreement for any reason by Interconnection Customer shall not constitute a waiver
of the Interconnection Customer's legal rights to obtain an interconnection from the
Area EPS Operator. Any waiver of this Agreement shall, if requested, be provided in
writing.
27.5. Entire Agreement.This Agreement, including all Attachments, constitutes the entire
agreement between the Parties with reference to the subject matter hereof, and
supersedes all prior and contemporaneous understandings or agreements, oral or
written, between the Parties with respect to the subject matter of this Agreement.
There are no other agreements, representations, warranties, or covenants which
constitute any part of the consideration for, or any condition to, either Party's
compliance with its obligations under this Agreement.This Agreement can only be
amended or modified in writing signed by both Parties.
27.6. Multiple Counterparts. This Agreement may be executed in two or more
counterparts, each of which is deemed an original but all constitute one and the
same instrument. Electronic signatures are acceptable if the Area EPS Operator has
made such a determination pursuant to M-MIP Overview Process Section 4.1.
27.7. No Partnership.This Agreement shall not be interpreted or construed to create an
association,joint venture, agency relationship, or partnership between the Parties or
to impose any partnership obligation or partnership liability upon either Party.
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Neither Party shall have any right, power or authority to enter into any agreement or
undertaking for, or act on behalf of, or to act as or be an agent or representative of,
or to otherwise bind, the other Party.
27.8. Severability. If any provision or portion of this Agreement shall for any reason be held
or adjudged to be invalid or illegal or unenforceable by any court of competent
jurisdiction or other Governmental Authority, (1) such portion or provision shall be
deemed separate and independent, (2) the Parties shall negotiate in good faith to
restore insofar as practicable the benefits to each Party that were affected by such
ruling, and (3) the remainder of this Agreement shall remain in full force and effect.
27.9. Security Arrangements. Infrastructure security of electric system equipment and
operations and control hardware and software is essential to ensure day-to-day
reliability and operational security. All public utilities are expected to meet basic
standards for system infrastructure and operational security, including physical,
operational, and cyber-security practices.
27.10.Environmental Releases. Each Party shall notify the other Party, first orally and then
in writing, of the release of any hazardous substances, any asbestos or lead
abatement activities, or any type of remediation activities related to the Distributed
Energy Resource or the Interconnection Facilities, each of which may reasonably be
expected to affect the other Party.The notifying Party shall (1) provide the notice as
soon as practicable, provided such Party makes a good faith effort to provide the
notice no later than 24 hours after such Party becomes aware of the occurrence, and
(2) promptly furnish to the other Party copies of any publicly available reports filed
with any governmental authorities addressing such events.
27.11.Subcontractors. Nothing in this Agreement shall prevent a Party from utilizing the
services of any subcontractor as it deems appropriate to perform its obligations
under this Agreement. Each Party shall require its subcontractors to comply with all
applicable terms and conditions of this Agreement in providing such services and
each Party shall remain primarily liable to the other Party for the performance of
such subcontractor.
27.11.1. The creation of any subcontract relationship shall not relieve the hiring
Party of any of its obligations under this Agreement. The hiring Party shall
be fully responsible to the other Party for the acts or omissions of any
subcontractor the hiring Party hires as if no subcontract had been made.
In no event shall the Area EPS Operator be liable for the actions or
inactions of the Interconnection Customer or its subcontractors with
respect to obligations of the Interconnection Customer under this
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SCHEDULE 2-STANDARD CONTRACTS
Agreement. Any applicable obligation imposed by this Agreement upon
the hiring Party shall be equally binding upon, and shall be construed as
having application to, any subcontractor of such Party.
27.11.2. The obligations under this article will not be limited in any way by any
limitation of subcontractor's insurance.
27.12.Inclusion of Area EPS Operator Tariff and Rules. The interconnection services
provided under this Agreement shall at all times be subject to the terms and
conditions set forth in the rate schedules and rules applicable to the electric service
provided by the Area EPS Operator, which rate schedules and rules are hereby
incorporated into this Agreement by this reference.
28 Notices
28.1. General. Unless otherwise provided in this Agreement, any written notice, demand,
or request required or authorized in connection with this Agreement ("Notice") shall
be deemed properly given if delivered in person, delivered by recognized national
currier service, or sent by first class mail, postage prepaid, to the person specified as
follows:
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Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.2. Billing and Payment. Billing and payments shall be sent to the addresses set out
below:
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
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Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.3. Alternative Forms of Notice. Any notice or request required or permitted to be given
by either Party to the other and not required by this Agreement to be given in writing
may be so given by telephone or e mail to the telephone numbers and e-mail
addresses set out below:
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
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28.4. Designated Operating Representative. The Parties may also designate operating
representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement.This person will also serve as
the point of contact with respect to operations and maintenance of the Party's
facilities.
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.5. Changes to Notification. Either Party may change this information by giving five
Business Days written notice to the other Party prior to the effective date of the
change.
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31 Signatures
IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
[Insert name of Area EPS Operator] [Insert name of Interconnection Customer]
Signed: Signed:
Name (Printed): Name (Printed):
Title: Title:
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Attachment I: Glossary of Terms
Affected System—Another Area EPS Operator's System, Transmission Owner's Transmission
System, or Transmission System connected generation which may be affected by the proposed
interconnection.
Applicant Agent—A person designated in writing by the Interconnection Customer to represent
or provide information to the Area EPS on the Interconnection Customer's behalf throughout
the interconnection process.
Area EPS—The electric power distribution system connected at the Point of Common Coupling.
Area EPS Operator—An entity that owns, controls, or operates the electric power distribution
systems that are used for the provision of electric service in Minnesota. For this Interconnection
Process the Area EPS Operator is [NAME OF UTILITY]
Business Day—Monday through Friday, excluding Holidays as defined by Minn. Stat. §645.44,
Subdivision 5. Any communication to have been sent or received after 4:30 p.m. Central
Prevailing Time or on a Saturday, Sunday or holiday shall be considered to have been sent on
the next Business Day.
Certified Equipment—Certified equipment is equipment that has been tested by a national
recognized lab meeting a specific standard. For DER systems, UL 1741 listing is a common form
of DER inverter certification. Additional information is seen in the Certification Codes and
Standards document.
Confidential Information —Any confidential and/or proprietary information provided by one
Party to the other Party and is clearly marked or otherwise designated "Confidential." All
procedures, design, operating specifications, and metering data provided by the
Interconnection Customer may be deemed Confidential Information. See Overview Process
Section 12.1 for further information.
Distributed Energy Resource (DER)—A source of electric power that is not directly connected
to a bulk power system or central station service. DER includes both generators and energy
storage technologies capable of exporting active power to an EPS. An interconnection system or
a supplemental DER device that is necessary for compliance with this standard is part of a DER.
For the purpose of the Interconnection Process and interconnection agreements, the DER
includes the Customer's Interconnection Facilities but shall not include the Area EPS Operator's
Interconnection Facilities.
Distribution System—The Area EPS facilities which are not part of the Local EPS,Transmission
System or any generation system.
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Distribution Upgrades—The additions, modifications, and upgrades to the Distribution System
at or beyond the Point of Common Coupling to facilitate interconnection of the DER and render
the distribution service necessary to affect the Interconnection Customer's connection to the
Distribution System. Distribution Upgrades do not include Interconnection Facilities.
Electric Power System (EPS)—The facilities that deliver electric power to a load.
Fast Track Process—The procedure as described in the Interconnection Process - Fast Track
Process for evaluating an Interconnection Application for a DER that meets the eligibility
requirements in the Overview Process Section 2.3.
Force Majeure Event—An act of God, labor disturbance, act of the public enemy, war,
insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or
equipment, an order, regulation or restriction imposed by governmental, military or lawfully
established civilian authorities, or another cause beyond a Party's control. A Force Majeure
Event does not include an act of negligence or intentional wrongdoing.
Good Utility Practice—Any of the practices, methods and acts engaged in or approved by a
significant portion of the electric industry during the relevant time period, or any of the
practices, methods and act which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish the desired
result at a reasonable cost consistent with good business practices, reliability, safety and
expedition. Good Utility Practice is not intended to be limited to the optimum practice, method,
or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts
generally accepted in the region.
Governmental Authority—Any federal, state, local or other governmental regulatory or
administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, or other governmental authority having
jurisdiction over the Parties, their respective facilities, or the respective services they provide,
and exercising or entitled to exercise any administrative, executive, police, or taxing authority
or power; provided, however, that such term does not include the Interconnection Customer,
the Area EPS Operator, or any Affiliate thereof. The utility's local governing body is the
authority governing interconnection requirements unless otherwise provided for in the
Minnesota Technical Requirements.
Interconnection Agreement—The terms and conditions between the Area EPS Operator and
Interconnection Customer (Parties). See Section 8 in the Overview ProcessError! Reference
source not found. for when the Uniform Contract or Interconnection Agreement applies.
Interconnection Application—The Interconnection Customer's request to interconnect a new
or modified, as described in Section 4 of the Overview Process, DER. See Simplified Application
Form and Interconnection Application Form.
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Interconnection Customer—The person or entity, including the Area EPS Operator, whom will
be the owner of the DER that proposes to interconnect a DER(s) with the Area EPS Operator's
Distribution System.The Interconnection Customer is responsible for ensuring the DER(s) is
designed, operated and maintained in compliance with the Minnesota Technical Requirements.
Interconnection Facilities—The Area EPS Operator's Interconnection Facilities and the
Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities
include all facilities and equipment between the DER and the Point of Common Coupling,
including any modification, additions or upgrades that are necessary to physically and
electrically interconnect the DER to the Area EPS Operator's System. Some examples of
Customer Interconnection Facilities include: supplemental DER devices, inverters, and
associated wiring and cables up to the Point of DER Connection. Some examples of Area EPS
Operator Interconnection Facilities include sole use facilities; such as, line extensions, controls,
relays, switches, breakers, transformers and shall not include Distribution Upgrades or Network
Upgrades.
Interconnection Process—The Area EPS Operator's interconnection standards in this
document.
Material Modification—A modification to machine data, equipment configuration or to the
interconnection site of the DER at any time after receiving notification by the Area EPS
Operator of a complete Interconnection Application that has a material impact on the cost,
timing, or design of any Interconnection Facilities or Upgrades, or a material impact on the cost,
timing or design of any Interconnection Application with a later Queue Position or the safety or
reliability of the Area EPS.'
MN Technical Requirements—The term including all of the DER technical interconnection
requirement documents for the state of Minnesota; including Attachment 2 Distributed
Generation Interconnection Requirements established in the Commission's September 28, 2004
Order in E-999/CI-01-1023) until superseded and upon Commission approval of updated
A Material Modification shall include,but may not be limited to,a modification from the approved
Interconnection Application that: (1)changes the physical location of the point of common coupling;such that it is
likely to have an impact on technical review; (2)increases the nameplate rating or output characteristics of the
Distributed Energy Resource;(3)changes or replaces generating equipment,such as generator(s),inverter(s),
transformers,relaying,controls,etc.,and substitutes equipment that is not like-kind substitution in certification,size,
ratings,impedances,efficiencies or capabilities of the equipment;(4)changes transformer connection(s)or
grounding;and/or(5)changes to a certified inverter with different specifications or different inverter control settings
or configuration.A Material Modification shall not include a modification from the approved Interconnection
Application that:(1)changes the ownership of a Distributed Energy Resource; (2)changes the address of the
Distributed Energy Resource,so long as the physical point of common coupling remains the same; (3)changes or
replaces generating equipment such as generator(s), inverter(s),solar panel(s),transformers,relaying,controls,etc.
and substitutes equipment that is a like-kind substitution in certification,size,ratings, impedances,efficiencies or
capabilities of the equipment;and/or(4)increases the DC/AC ratio but does not increase the maximum AC output
capability of the Distributed Energy Resource in a way that is likely to have an impact on technical review.
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Minnesota DER Technical Interconnection and Interoperability Requirements in E-999/CI-16-
521 (anticipated July 2019.)
Nameplate Rating- nominal voltage (V), current (A), maximum active power (kWac), apparent
power (kVA), and reactive power(kVar) at which a DER is capable of sustained operation. For a
Local EPS with multiple DER units, the aggregate nameplate rating is equal to the sum of all
DERs nameplate rating in the Local EPS. For purposes of the Attachment V in the
Interconnection Agreement, the DER system's capacity may, with the Area EPS's agreement, be
limited thought use of control systems, power relays or similar device settings or adjustments
as identified in IEEE 1547. The nameplate ratings referenced in the Interconnection Process are
alternating current nameplate DER ratings at the Point of DER Coupling.
Network Upgrades—Additions, modifications, and upgrades to the Transmission System
required at or beyond the point at which the DER interconnects with the Area EPS Operator's
System to accommodate the interconnection with the DER to the Area EPS Operator's System.
Network Upgrades do not include Distribution Upgrades.
Operating Requirements—Any operating and technical requirements that may be applicable
due to the Transmission Provider's technical requirements or Minnesota Technical
Requirements, including those set forth in the Interconnection Agreement.
Party or Parties—The Area EPS Operator and the Interconnection Customer.
Point of Common Coupling(PCC)—The point where the Interconnection Facilities connect with
the Area EPS Operator's Distribution System. See figure 1. Equivalent, in most cases, to "service
point" as specified by the Area EPS Operator and described in the National Electrical Code and
the National Electrical Safety Code.
Municipal Minnesota Interconnection Agreement_January 2019 28
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SCHEDULE 2-STANDARD CONTRACTS
Area Electric Power System(Area EPS)
Petit of Commoi if
Coupling(PCCJ r PCC PCC
PoC PoC PoC
N
P.0 �.
DNSt�ibteL# Distributed:, `y lament
Energy Energy ?`Device
Resource "' Resource
(DM un W (DER)unit
Local EPS 1 Local EPS 3 Distributed
- Energy
y Reso arre
PCC —+ PQC— ►'ll (DER unit
Pot ---►
point oft r--+
connection
'„. ,,,
(POD "`
Distnbu.-`.•. Distributed
Energy .,.tementeI Energy Distributed
.Rescurce P R Device Resource Energy
Di_a)unit ., (DER)unit Resource
(DER)unit
Local EPS 2 Lace EEFSa LocalEPS5
. J
Figure 1: Point of Common Coupling and Point of DER Connection
(Source: IEEE 1547)
Point of DER Connection (PoC)—When identified as the Reference Point of Applicability,the
point where an individual DER is electrically connected in a Local EPS and meets the
requirements of this standard exclusive of any load present in the respective part of the Local
EPS (e.g. terminals of the inverter when no supplemental DER device is required.) For DER
unit(s) that are not self-sufficient to meet the requirements without a supplemental DER
device(s), the Point of DER Connection is the point where the requirements of this standard are
met by DER in conjunction with a supplemental DER device(s) exclusive of any load present in
the respective part of the Local EPS.
Queue Position—The order of a valid Interconnection Application, relative to all other pending
valid Interconnection Applications, that is established based upon the date- and time- of receipt
of the complete Interconnection Application as described in Section 4.7 of the Overview
ProcessError! Reference source not found..
Reasonable Efforts—With respect to an action required to be attempted or taken by a Party
under these procedures, efforts that are timely and consistent with Good Utility Practice and
are otherwise substantially equivalent to those a Party would use to protect its own interests.
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Reference Point of Applicability—The location, either the Point of Common Coupling or the
Point of DER Connection, where the interconnection and interoperability performance
requirements specified in IEEE 1547 apply. With mutual agreement, the Area EPS Operator and
Customer may determine a point between the Point of Common Coupling and Point of DER
Connection. See Minnesota Technical Requirements for more information.
Simplified Process—The procedure for evaluating an Interconnection Application for a certified
inverter-based DER no larger than 20 kW that uses the screens described in the Interconnection
Process—Simplified Process document.The Simplified Process includes simplified procedures.
Study Process—The procedure for evaluating an Interconnection Application that includes the
scoping meeting, system impact study, and facilities study.
Transmission Owner—The entity that owns, leases or otherwise possesses an interest in the
portion of the Transmission System relevant to the Interconnection.
Transmission Provider—The entity (or its designated agent) that owns, leases, controls, or
operates transmission facilities used for the transmission of electricity. The term Transmission
Provider includes the Transmission Owner when the Transmission Owner is separate from the
Transmission Provider.The Transmission Provider may include the Independent System
Operator or Regional Transmission Operator.
Transmission System—The facilities owned, leased, controlled or operated by the Transmission
Provider or the Transmission Owner that are used to provide transmission service. See the
Commission's July 26, 2000 Order Adopting Boundary Guidelines for Distinguishing
Transmission from Generation and Distribution Assets in Docket No. E-999/CI-99-1261.
Uniform Contract—the Area EPS Operator's Agreement for Cogeneration and Small Power
Production Facilities (Uniform Contract) that may be applied to all qualifying new and existing
interconnections between the Area EPS Operator and an DER system having capacity less than
40 kilowatts.
Upgrades—The required additions and modifications to the Area EPS Operator's Transmission
or Distribution System at or beyond the Point of Interconnection. Upgrades may be Network
Upgrades or Distribution Upgrades. Upgrades do not include Interconnection Facilities.
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Attachment II: Description and Costs of the Distributed Energy
Resource, Interconnection Facilities, and Metering Equipment
Equipment, including the Distribution Energy Resource, Interconnection Facilities, and metering
equipment shall be itemized and identified as being owned by the Interconnection Customer or
the Area EPS Operator.The Area EPS Operator will provide a good faith estimate itemized cost,
including administrative overheads, of its Interconnection Facilities and metering equipment,
and a good faith estimate itemized cost of the annual operation and maintenance expenses
associated with the Interconnection Facilities and metering equipment.
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Attachment III: One-line Diagram Depicting the Distributed Energy
Resource, Interconnection Facilities, and Metering Equipment, and
Upgrades
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Attachment IV: Milestones
The Milestones in line (1) below may be a calendar date. All other dates in this Attachment IV
may be the number of Business Days from the calendar date in line (1) or from the completion
of a different Milestone described in a specific number line. Similarly, the anticipated In-Service
Date may be based on the number of Business Days from the completion of a specified line
number.
In-Service Date:
Critical milestones and responsibilities as agreed to by the Parties:
Milestone/Anticipated Date Responsible Party
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
Agreed to by:
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SCHEDULE 2-STANDARD CONTRACTS
Area EPS Operator Date
Transmission Owner
(If Applicable) Date
Interconnection
Customer Date
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SCHEDULE 2-STANDARD CONTRACTS
Attachment V: Additional Operating and Maintenance Requirements
for the Area EPS Operator's Distribution System and Affected Systems
Need to Support the Interconnection Customer's Needs
The Area EPS Operator shall also provide requirements that must be met by the
Interconnection Customer prior to initiating parallel operation with the Area EPS Operator's
Distribution System. Additional operating and maintenance requirements for an Affected
System needed to support the Interconnection Customer's needs may be addressed in a
separate agreement described in Section 14.6.
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Attachment VI: Area EPS Operator's Description of Distribution and
Network Upgrades and Good Faith Estimates of Upgrade Costs
The Area EPS Operator shall describe Distribution and Network Upgrades and provide an
itemized good faith estimate of the costs, including administrative overheads, of the Upgrade
and annual operations and maintenance expenses associated with such Upgrades.The Area EPS
Operator shall functionalize Upgrade costs and annual expenses as either transmission or
distribution related. Additional Distribution or Network Upgrades required for an Affected
System may be addressed in a separate agreement as described in Section 14.6.
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Attachment VII: Assignment of Interconnection Agreement
This is an Assignment of Interconnection Agreement ("Agreement").
There is an Interconnection Agreement, including any and all Attachments thereto including
any and all amendments ("Agreement") by and between
, a municipal utility existing under the laws of the State of
Minnesota, ("Area EPS Operator"), and ,
("Assignor") originally signed by the Area EPS Operator on for a
Distributed Energy Resource (DER) described as follows:
DER System Information
Type of DER System:
Capacity Rating of System (AC):
Limited Capacity Rating (AC):
Address of DER System:
The Assignor intends to convey its interest in the above-referenced DER to
("Assignee"), and the Assignor intends to assign the Agreement
to the Assignee.
Upon the execution of this Assignment by the Assignor, Assignee and the Area EPS Operator,
agree as follows:
1. Capitalized Terms. Capitalized terms used but not defined herein shall have the
meanings set forth in the Agreement.
2. Consent to Assignment.The Assignor hereby irrevocably assigns the Agreement in all
respects to the Assignee and the Assignee accepts the assignment thereof in all
respects.
3. Amendment to Agreement.The Area EPS Operator consents to this assignment and, as
assigned, the Agreement is hereby amended so that wherever the name of the Assignor
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SCHEDULE 2-STANDARD CONTRACTS
is used therein it shall mean the Assignee. It is further agreed that all terms and
conditions of the Agreement, as amended by this Assignment, shall remain in full force
and effect.
4. Payments by Area EPS Operator. Any and all payments made by Area EPS Operator
under the Agreement to either the Assignor or the Assignee shall be deemed to have
been made to both and shall discharge the Area EPS Operator from any further liability
with regard to said payment.
5. Financial Obligations of Assignor and Assignee. Any and all financial liability, including
but not limited to amounts due, from the Interconnection Customer to the Area EPS
Operator, occurring or accruing under the Agreement on or before the date of the
signature of the Area EPS Operator to this Assignment shall be deemed to be the
obligation of both the Assignor and Assignee, and the Area EPS Operator may recover
any such amounts jointly and severally from the Assignor and Assignee.
6. Contact information.The following information updates and replaces the designated
information as set forth on page 1 of the Agreement, and in Section 28.1, 28.2, 28.3 and
28.4 of the Agreement.
Page 1 Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.1 General Notices. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
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SCHEDULE 2-STANDARD CONTRACTS
28.2 Billing and Payment Notices. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.3 Alternative Forms of Notices. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.4 Designated Operating Representative. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
7. Signatures. Facsimile or electronic signatures, or signatures to this Assignment sent
electronically, shall have the same effect as original signatures. Photocopies, or
electronically stored versions of this Assignment, shall have the same validity as the
original.
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The Area EPS Operator, Assignor, and Assignee have executed this Assignment as of the
dates as set forth below.
Assignor
[Insert legal name of Assignor]
Signed:
Name (Printed):
Title:
Date:
Assignee
[Insert legal name of Assignee]
Signed:
Name (Printed):
Title:
Date:
Area EPS Operator
[Insert legal name of Area EPS Operator]
Signed:
Name (Printed):
Title:
Date:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Elk River Municipal Utilities
Distributed Energy Resources Interconnection Process
Table of Contents
1. Booklets—Anyone requesting interconnection information receives a Process Overview booklet
and the appropriate Process booklet(b,c or d)
a. Process Overview
b. Simplified Process (under 20kW capacity)
c. Fast Track Process (see applicability within)
d. Study Process (see applicability within)
2. Initial Procedural Forms
a. Pre-application Report Request
b. Pre-application Report
c. Simplified Interconnection Application
d. Standard Interconnection Application (for Fast Track and Study processes)
e. Energy Storage Application
3. Supplemental Agreement Forms
a. Supplemental Review Offer
b. System Impact Study Agreement
c. Facility Study Agreement
d. Transmission System Impact Study Agreement
4. Final Agreement Forms
a. Uniform Contract(under 40kW capacity)
b. Municipal Minnesota Interconnection Agreement(over 40kW or upon customer request)
c. Certificate of Completion
5. State of Minnesota Distributed Generation Interconnection Requirements
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
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3 3
ABSTRACT
Detroit Lakes Public Utility's 29.3 kW Select Solar Information for interconnecting all Distributed
Community Solar Garden Energy Resources smaller than 10 megawatts in
Detroit Lakes, MN size to the utility distribution system.
INTERCONNECTION
PROCESS
Process Overview
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Contents
Foreword 1
1 Key Terminology 2
1.1. Distributed Energy Resource 2
1.2. Point of Common Coupling (PCC)/ Point of DER Connection (POC) 2
1.3. Capacity 2
2 Roles 2
2.1. Overview 2
2.2. DER Interconnection Coordinator 3
2.3. Interconnection Customer 3
2.4. Application Agent 3
2.5. Engineering Roles 3
3 Processes 3
3.1. Overview 3
3.2. Importance of Process Timelines 4
3.3. Simplified Process 5
3.4. Fast Track Process 5
3.5. Study Process 6
3.6. Process Assistance 6
4 Interconnection Application 6
4.1. Overview 6
4.2. Availability of Information 7
4.3. Interconnection Application Process Fees 7
4.4. Application Review Timelines 7
4.5. Comparability 8
4.6. Changing Process Queues 8
4.7. Queue Position 8
4.8. Site Control 9
5 Pre-Application Report 9
5.1. Pre-Application Report Requests 9
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5.2. Information Provided 9
5.3. Pre-Application Report Components 10
6 Capacity of the Distributed Energy Resources 11
6.1. Existing DER System Expansion 11
6.2. New DER Systems 11
6.3. Limited Capacity 11
7 Modification to Interconnection Applications 12
7.1. Procedures 12
8 Interconnection Agreements 12
8.1. Timelines 12
8.2. Types of Agreements 13
9 Interconnection 13
9.1. Metering 13
9.2. Inspection,Testing and Commissioning 13
9.3. Interconnection Costs 14
9.4. Technical Requirements 14
9.5. Authorization for Parallel Operations 14
10 Extension of Timelines 15
10.1. Reasonable Efforts 15
10.2. Extensions 15
11 Disputes 15
11.1. Procedures 15
12 Clauses 15
12.1. Confidentiality 15
12.2. Non-Warranty 17
12.3. Indemnification 17
12.4. Limitation of Liability 18
13 Glossary 19
14 Certification of DER Equipment 25
15 Certification Codes and Standards 27
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Foreword
The State of Minnesota currently has interconnection process standards in effect to address the
interconnection of distributed energy resources (DER) to the distribution grid. Under Minnesota
Statute §216B.1611, cooperatives and municipals shall adopt an interconnection process that
addresses the same issues as the interconnection process approved by the Minnesota Public
Utilities Commission. The Elk River Municipal Utilities Distributed Energy Resources
Interconnection Process (Interconnection Process) applies to any DER no larger than 10-
megawatts (MW) AC interconnecting to and operating in parallel with Elk River Municipal
Utility's distribution system in Minnesota. This interconnection process document is designed
to be customer-centric when explaining the steps and details to interconnect DER systems to
the distribution grid.
The Interconnection Process is comprised of four manuals: 1) Process Overview, 2) Simplified
Process, 3) Fast Track Process, and 4) Study Process and also contains several forms, including a
final Interconnection Agreement. For the majority of DER interconnections, only the Process
Overview and the Simplified Process manuals will apply. For larger and more complex DER
interconnections, the Fast Track Process or the Study Process may apply.
As part of the Interconnection Process, an Interconnection Agreement is to be executed prior to
interconnecting a DER system to the utility distribution grid. For most DER interconnections, the
utility's Contract for Cogeneration and Small Power Production Facilities (Uniform Contract) will
be used. For DER systems that do not fall under the terms of the Uniform Contract, the
Municipal Minnesota Interconnection Agreement (MMIA) will apply.
The process to interconnect a DER system to the distribution grid starts with the submission of
an Interconnection Application. Each track has different information that is requested in the
application and the non-refundable interconnection application fees will vary. Both the electric
utility and the interconnecting customer have timelines that are enforced to ensure a timely
application review, contract execution and interconnection commissioning.
The key to a successful interconnection of a DER system is communication between all parties.
Timely submission of the Interconnection Application prior to the purchase and installation of a
DER system is strongly recommended. The Utility encourages customers to ask questions
throughout the interconnection process. Interconnecting DER system to the distribution grid is
not an effortless process, but it does not need to be a problematic process either.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
1 Key Terminology
1.1. Distributed Energy Resource
Distributed Energy Resources, DER, were often referred to in past interconnection
processes as Distributed Generation, DG, and on occasion also interchanged with the
term Qualifying Facility, QF.This Interconnection Process uses the term DER to address
all types of generation and energy resources that can be interconnected to the electric
Distribution System. DER technologies can include photovoltaic solar systems, wind
turbines, storage batteries or diesel generators and are not limited to renewable types
of technologies.
1.2. Point of Common Coupling (PCC) / Point of DER Connection (POC)
DER systems often reside behind the utility's revenue meter of a residence or business.
The meter is normally the point of demarcation between the utility-owned equipment
and the customer-owned equipment.The term Point of Common Coupling, PCC, is the
demarcation location between the utility and the customer.
The Point of DER Connection, PoC, can be different from the PCC. The PoC is the
location where a DER system would interconnect to the electrical system normally
owned by the customer. For example, the PoC for a rooftop photovoltaic solar system
may be the main electrical panel in a customer's home.
1.3. Capacity
Throughout the Interconnection Process will be references to the capacity of the DER
system. In most cases, the capacity listed is referring to the Nameplate Capacity of the
DER system. All capacity references will be in alternating current, AC.
There can be multiple DER systems with different PoCs that all have the same PCC
submitted on a single interconnection application. The capacity for this type of
interconnection would be the aggregate Nameplate Capacity of all DER systems at the
individual PoCs. Additional examples of DER system arrangements can be seen in
Section 13 under the definition of Point of Common Coupling.
2 Roles
2.1. Overview
During the interconnection process for a proposed DER system, there may be multiple
entities involved in the application, approval and commissioning processes. The main
entities that are involved during the Interconnection Process for a proposed DER
system are the Interconnection Customer, the Application Agent and the DER
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Coordinator. Official definitions of each entity are defined in the
Glossary (Section 13). Additional details are explained in the subsections below.
2.2. DER Interconnection Coordinator
The utility is referred to as the Area Electric Power Supply Operator in this
Interconnection Process.The Area EPS Operator shall designate a DER Interconnection
Coordinator to serve as a single point of contact from which general information on the
application process may be obtained. The DER Interconnection Coordinator shall be
available to provide coordination assistance with the Interconnection Customer but is
not responsible for directly answering or resolving all of the issues involved in review
and implementation of the interconnection process and standards.
The contact information of the DER Interconnection Coordinator will be posted on the
Area EPS Operator's website if feasible, or available from the utility.
2.3. Interconnection Customer
The owner of the proposed DER system and the entity requesting interconnection to
the distribution system.
2.4. Application Agent
The Interconnection Customer may designate, on the Interconnection Application or in
writing after the application has been submitted, an Application Agent to serve as a
single point of contact to coordinate with the DER Interconnection Coordinator on their
behalf. Designation of an Application Agent does not absolve the Interconnection
Customer from signing application documents and the responsibilities outlined in the
Interconnection Process or in interconnection agreements. DER vendors, project
managers or electricians are common entities that the Interconnection Customer may
designate to perform this role.
2.5. Engineering Roles
Either party may designate a specific person to be a single point of contact to provide
technical expertise during the Interconnection Process for themselves or their
organization. The person to supply engineering expertise may be a third party such as
an engineering consultant or manufacturer's engineer.
3 Processes
3.1. Overview
The Interconnection Process applies to any DER no larger than 10 MW AC
interconnecting to and operating in parallel with an Area EPS distribution system in
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Minnesota. Interested parties with plans to interconnect DER systems larger than 10
MW AC to the distribution system should contact the Area EPS Operator for a case-
specific interconnection process. Federal Energy Regulatory Commission's (FERC)
interconnection process will supersede any interconnection process the Area EPS
Operator has for DER system interconnections that fall under the jurisdiction of FERC.
The Interconnection Process for DER is broken into three different tracks; the Simplified
Process, the Fast Track Process, and the Study Process. The general classification of
each track is summarized in Table 3.1 below.
Table 3.1. Interconnection Process Tracks
Track DER Technology Size
Limitations
Simplified Process Certified Inverter only 20 kW AC
Fast Track Process All types 5 MW AC
Study Process All types 10 MW AC
If engineering screens are failed during the application process, a proposed DER
interconnection may be moved into a different track. When a proposed DER
interconnection is moved into a different track, additional information may be
requested and additional fees may apply.
3.2. Importance of Process Timelines
It is very important to pay attention to timelines listed for each process track. The
timelines exist for an orderly and efficient process to interconnect DER systems to the
Distribution System. If a timeline is missed by an Interconnection Customer, without
the Interconnection Customer requesting a Timeline Extension explained in Section 10,
the Interconnection Application will be deemed withdrawn by the Area EPS Operator.
The Area EPS Operator also needs to abide by the timelines listed for each process
track. The process for an Area EPS Operator to request Timeline Extensions is also
addressed in Section 10.
Unless otherwise stated, all time frames are measured in Business Days. For purpose of
measuring these time intervals, the time shall be computed so as to exclude the first
and include the last day of the prescribed duration of time. Any communication sent or
received after 4:30 p.m. Central Prevailing Time or on a Saturday, Sunday or Holiday
shall be considered to be sent on the next Business Day.
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3.3. Simplified Process
An application to interconnect a certified', inverter-based DER system no larger than 20
kilowatts (kW) shall be evaluated under the Simplified Process. A common form of DER
inverter certification is UL 1741. Proposed DER systems that require Area EPS system
modifications to accommodate the interconnection do not qualify for the Simplified
Process. A transformer change, fusing upgrades or line extensions are common
examples of Area EPS system modification. Simplified Process eligibility does not imply
or indicate the Interconnection Application will pass the initial review screens. Failure
to pass the screens will route the Interconnection Application to the Fast Track Process.
3.4. Fast Track Process
An application to interconnect a DER shall be evaluated under the Fast Track Process if
the eligibility requirements are not exceeded in Table 3.2 and the application does not
qualify for the Simplified Process. Fast Track eligibility for DERs is determined based
upon the generator type, the size of the generator, voltage of the line, and the location
and type of line at the Point of Common Coupling, (PCC). All synchronous and induction
machines must be no larger than 2 MW to be eligible for Fast Track Process
consideration.
Table 3.2. Fast Track Eligibility for DER
2 Fast Track Eligibility for certified,
Fast Track Eligibility 3
inverter-based DER on a Mainline
Line Voltage Regardless of
and <_2.5 Electrical Circuit Miles from
Location
Substation4
< 5 kV <_500 kW <_ 500 kW
>_ 5kV and < 15kV <_ 1MW <_ 2MW
>_ 15kV and <30kV <_ 2MW <_4MW
>_30kV and <_69kV <_4MW <_ 5MW
In addition to the size threshold, the Interconnection Customer's proposed DER must
meet the codes, standards and certification requirements found in Section 15 and
Section 14.
'Additional information regarding certified equipment is found in Sections 14 and 15.
2 Synchronous and induction machine eligibility is limited to no more than 2 MW even when line voltage is greater
than 15 kV.
3 For purposes of this table,a Mainline is the three-phase backbone of a circuit. It will typically constitute lines with
wire sizes of 4/0 American wire gauge,266 kcmil, 336.4 kcmil, 397.5 kcmil,477 kcmil and 795 kcmil.
4 An Interconnection Customer can determine this information about its proposed interconnection location in
advance by requesting a pre-application report described in Section 5.
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3.5. Study Process
An application to interconnect a DER that does not meet the Simplified Process or Fast
Track Process eligibility requirements or does not pass the review as described in either
process, shall be evaluated under the Study Process.
3.6. Process Assistance
Prior to submitting an Interconnection Application, the Interconnection Customer may
ask the Area EPS Operator's DER Interconnection Coordinator which process track a
proposed interconnection is subject to and about additional details regarding each
process track.
An Interconnection Customer can obtain, through an informal request, general
information about the Interconnection Process and about potentially Affected
System(s) for a proposed interconnection at a specific location. The existing electric
system information provided to the Interconnection Customer should include relevant
system study results, interconnection studies, and other materials useful to an
understanding of an interconnection at a particular point on the Area EPS Operator's
System. Information will be provided to the extent such provision does not violate the
privacy policies of the Area EPS Operator, confidentiality provisions of prior agreements
or critical infrastructure requirements. The Area EPS Operator shall comply with
reasonable requests for such information.
4 Interconnection Application
4.1. Overview
Each process track has different information that needs to be provided to the Area EPS
Operator.Table 4.1 indicates which application is to be completed in its entirety and
submitted to the Area EPS Operator to start the interconnection process for the
proposed DER system.
Table 4.1. Interconnection Application
Process Track Application
Simplified Simplified Interconnection Application
Fast Track Standard Interconnection Application
Study Standard Interconnection Application
The Area EPS Operator will provide all necessary Interconnection Applications,
Interconnection Process documents and sample interconnection agreements on its
website if possible.The Area EPS Operator will also accept Interconnection Applications
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submitted electronically either through a web portal or to an email address specified by
the Area EPS Operator. The Area EPS Operator may allow the Interconnection
Application to be submitted with an electronic signature.
4.2. Availability of Information
The Area EPS Operator will provide all necessary Interconnection Applications,
Interconnection Process documents and sample interconnection agreements on its
website if possible. If a website is not available, the applicable documents will be
readily available at the Area EPS Operator's main office.
The Area EPS Operator will establish a public queue of active interconnection
applications on its website once the Area EPS Operator has received at least 40
completed Interconnection Applications in a year.The public queue will be updated, at
minimum, on a monthly basis.
4.3. Interconnection Application Process Fees
Each Interconnection Application submitted to the Area EPS Operator must include the
appropriate interconnection application process fee prior to the Area EPS Operator
reviewing the Interconnection Application. The required process fee for each process
track is listed in Table 4.2.
Table 4.2. Interconnection Application Process Fee
Process Track Process Fee
Simplified $100
Certified'System $100+$1/kW
Fast Track
Non-Certified System $100+$2/kW
Study $1,000+$2/kW down payment.
Additional study fees may apply.
4.4. Application Review Timelines
The Interconnection Application shall be date- and time-stamped upon initial, and if
necessary, resubmission receipt.The Area EPS Operator shall notify the
Interconnection Customer if the Interconnection Application is deemed incomplete
within ten (10) Business Days. This notification shall include a written list detailing all
information that must be provided to complete the Interconnection Application.
Depending on the process track the Interconnection Customer has between five (5) and
ten (10) Business Days to provide the missing information unless additional time is
5 Additional information regarding certified equipment is found in Sections 14 and 15.
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requested with valid reasons. Failure to submit the requested information within the
stated timeline will result in the Interconnection Application being withdrawn.
An Interconnection Application will be deemed complete upon submission to the Area
EPS Operator when all documents, fees and information required with the
Interconnection Application adhering to Minnesota Technical Requirements are
included.The time- and date- stamp of the completed Interconnection Application shall
be accepted as the qualifying date for purposes of establishing a queue position as
described in Section 4.7.
Depending on the process track the Area EPS Operator has either a total of twenty (20)
Business Days or twenty-five (25) Business Days to complete the Interconnection
Application review and submit notice back to the Interconnection Customer stating the
proposed DER system may proceed with the interconnection process or the proposed
DER system requires additional engineering studies. The period of time when waiting
for the Interconnection Customer to provide missing information is not included in the
Area EPS Operator's twenty(20) Business Days or twenty-five (25) Business Days
review timeline.
4.5. Comparability
The Area EPS Operator shall receive, process and analyze all Interconnection
Applications in a timely manner. The Area EPS Operator shall use the same Reasonable
Efforts in processing and analyzing Interconnection Applications from all
Interconnection Customers.
4.6. Changing Process Queues
During the review of the initially submitted Interconnection Application for the
proposed DER system, the Area EPS Operator may determine the proposed DER system
should be in a different process track. For proposed DER systems that are moved into a
different process track after submittal of the initial application, the difference between
the originally submitted processing fee and the current process track's processing fee
will be assessed. In addition, the Area EPS Operator may request the Interconnection
Customer to provide additional information regarding the proposed DER system.
4.7. Queue Position
The Area EPS Operator shall maintain a single, administrative queue and may manage
the queue by geographical region.The queue position of each completed
Interconnection Application is used to determine the engineering review. The queue
position is also used to determine the cost responsibility for system upgrades necessary
to accommodate the interconnection.
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An Interconnection Application will retain its queue number even when it is moved into
a different process track. An Interconnection Application can lose its queue position if
the Interconnection Customer misses timelines in the applicable process track. The
Interconnection Customer and Area EPS Operator have the opportunity to request
timeline extensions which are explained in detail in Section 10.
4.8. Site Control
Documentation of site control must be submitted with the Interconnection Application.
Site control may be demonstrated by any of the following:
• Ownership of, a leasehold interest in, or a right to develop a site for the purpose of
constructing the DER system.
• An option to purchase or acquire a leasehold site for constructing the DER system.
• An exclusivity or other business relationship between the Interconnection
Customer and the entity having the right to sell, lease, or grant to the
Interconnection Customer the right to possess or occupy a site for constructing the
DER system.
For DER in the Simplified Process, proof of site control may be demonstrated by the site
owner's signature on the Simplified Interconnection Application.
5 Pre-Application Report
5.1. Pre-Application Report Requests
The Interconnection Customer may submit a Pre-Application Report Request, including
a non-refundable fee of$300, for a Pre-Application Report on a proposed project at a
specific site.The Interconnection Customer must fill out the Pre-Application Request
form as completely as possible. The Area EPS Operator shall provide the readily
available data listed in Section 5.3 within fifteen (15) Business Days of receipt of a
completed request form and payment.The Pre-Application Report produced by the
Area EPS Operator is non-binding, does not confer any rights, and does not preclude
the Interconnection Customer from any interconnection process steps including
submission of the Interconnection Application.
5.2. Information Provided
Using the information provided in the Pre-Application Report Request form, the Area
EPS Operator will identify the substation/area bus, bank or circuit likely to serve the
proposed PCC. This selection by the Area EPS Operator does not necessarily indicate,
after application of the screens and/or study, that this would be the circuit the project
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ultimately connects to. The Interconnection Customer must request additional Pre-
Application Reports if information about multiple PCCs is requested.
The Pre-Application Report will only include existing data. A request for a Pre-
Application Report does not obligate the Area EPS Operator to conduct a study or other
analysis of the proposed DER in the event that data is not readily available. The Area
EPS Operator will provide the Interconnection Customer with the data that is available.
The confidentiality provisions in Section 12.1 apply to Pre-Application Reports.
5.3. Pre-Application Report Components
The Pre-Application Report shall include the following pieces of information provided
the data currently exists and is readily available.
• Total capacity (in megawatts (MW)) of substation/area bus, bank or circuit based
on normal or operating ratings likely to serve the proposed Point of Common
Coupling.
• Existing aggregate generation capacity(in MW) interconnected to a
substation/area bus, bank or circuit (i.e., amount of generation online) likely to
serve the proposed Point of Common Coupling.
• Aggregate queued generation capacity (in MW) for a substation/area bus, bank or
circuit (i.e., amount of generation in the queue) likely to serve the proposed Point
of Common Coupling.
• Available capacity(in MW) of substation/area bus or bank and circuit likely to
serve the proposed Point of Common Coupling (i.e., total capacity less the sum of
existing aggregate generation capacity and aggregate queued generation
capacity).
• Substation nominal distribution voltage and/or transmission nominal voltage if
applicable.
• Nominal distribution circuit voltage at the proposed Point of Common Coupling.
• Approximate circuit distance between the proposed Point of Common Coupling
and the substation.
• Relevant line section(s) actual or estimated peak load and minimum load data,
including daytime minimum load and absolute minimum load, when available.
• Whether the Point of Common Coupling is located behind a line voltage regulator.
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• Number and rating of protective devices and number and type (standard, bi-
directional) of voltage regulating devices between the proposed Point of Common
Coupling and the substation/area. Identify whether the substation has a load tap
changer.
• Number of phases available on the Area EPS medium voltage system at the
proposed Point of Common Coupling. If a single phase, distance from the three-
phase circuit.
• Limiting conductor ratings from the proposed Point of Common Coupling to the
distribution substation.
• Whether the Point of Common Coupling is located on a spot network, grid
network, or radial supply.
• Based on the proposed Point of Common Coupling, existing or known constraints
such as, but not limited to, electrical dependencies at that location, short circuit
interrupting capacity issues, power quality or stability issues on the circuit,
capacity constraints, or secondary networks.
6 Capacity of the Distributed Energy Resources
6.1. Existing DER System Expansion
If the Interconnection Application is for an increase in capacity to an existing DER
system, the Interconnection Application shall be evaluated on the basis of the total
new alternating current (AC) capacity of the DER.The maximum capacity for the DER
shall be the aggregate maximum Nameplate Rating unless the conditions in Section 6.3
are met.
6.2. New DER Systems
An Interconnection Application for a DER that includes multiple energy production
devices, (i.e. solar and storage), at a site for which the Interconnection Customer seeks
a simple Point of Common Coupling, shall be evaluated on the basis of the aggregated
maximum Nameplate Rating unless the conditions in Section 6.3 are met.
6.3. Limited Capacity
A DER system may include devices, (i.e. control systems, power relays or other similar
device settings), that can limit the maximum capacity at which the DER system can
generate into the Area EPS Operator's distribution system. For DER system that include
capacity limited devices, the Interconnection Customer must obtain the Area EPS
Operator's agreement to consider the DER system with the Nameplate Rating as the
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limited capacity. The Area EPS Operator's agreement shall not be unreasonably
withheld provided proper documentation is provided showing the effective limit active
power output will not adversely affect the safety and reliability of the Area EPS
Operator's distribution system. If the Area EPS Operator does not agree, the
Interconnection Application must be withdrawn or revised to specify the maximum
capacity that the DER system is capable of injecting into the Area EPS Operator's
distribution system without such limitations. Nothing in this section shall prevent the
Area EPS Operator from considering a higher output, (i.e. aggregate Nameplate Rating),
if the limitations do not provide adequate assurance, when evaluating the system
impacts.
7 Modification to Interconnection Applications
7.1. Procedures
At any time after the Interconnection Application is deemed complete, the
Interconnection Customer or the Area EPS Operator may identify modifications to the
proposed DER system that may improve costs and benefits (including reliability) of the
proposed DER system and the ability for the Area EPS Operator to accommodate the
proposed DER system. The Interconnection Customer shall submit to the Area EPS
Operator in writing all proposed modifications to any information provided in the
Interconnection Application. The Area EPS Operator cannot unilaterally modify the
Interconnection Application.
Additional information regarding modifications to interconnection applications is found
in each process track document.
8 Interconnection Agreements
8.1. Timelines
After the Interconnection Application has been approved by the Area EPS Operator, the
Area EPS Operator shall provide the Interconnection Customer with an executable
Interconnection Agreement within five (5) Business Days. The Interconnection
Customer shall have thirty(30) Business Days to sign and return the Interconnection
Agreement to the Area EPS Operator. The Area EPS Operator shall sign the
Interconnection Agreement within five (5) business days after receiving the signed
Interconnection Agreement from the Interconnection Customer.
If the Interconnection Customer fails to return a signed Interconnection Agreement to
the Area EPS Operator within thirty (30) Business Days and fails to request an extension
as explained in Section 10, the Interconnection Application will be deemed withdrawn.
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8.2. Types of Agreements
There are two main types of Interconnection Agreements that may be executed with
an approved Interconnection Application. In general, Interconnection Customers with a
proposed DER system that qualifies for the Simplified Process track will sign the Area
EPS Operator's Uniform Contract for Cogeneration and Small Power Production
Facilities (Uniform Contract). Proposed DER systems less than 100 kW that are under
the Fast Track process may also sign the Uniform Contract. All other sized DER system
will sign the Municipal Minnesota Interconnection Agreement (MMIA). Area EPS
Operators who do not purchase the excess generation of the proposed DER system will
also require the MMIA to be executed for any size of DER system.
Table 8.1. Interconnection Agreements
Process Track Interconnection Agreement
Simplified Uniform Contract
Qualifies for Net Energy Billing Uniform Contract
Less than 100 kW&Area EPS Agrees
Fast Track Uniform Contract
to Purchase Excess Generation
All Other DER systems MMIA
Study MMIA
Interconnection Customers may choose to sign the MMIA in lieu of the Uniform
Contact. A separate power purchase agreement will also need to be executed if the
Uniform Contract is not utilized. Interconnection of the proposed DER system will not
occur until a signed Uniform Contract or the MMIA is returned to the Area EPS
Operator no later than five (5) days prior to scheduled testing and inspection.
9 Interconnection
9.1. Metering
Any metering requirements necessitated by the use of the DER system shall be installed
at the Interconnection Customer's expense.The metering requirement costs will be
included in the final invoice of interconnection costs to the Interconnection Customer.
The Interconnection Customer is also responsible for metering replacement costs not
covered in the Interconnection Customer's general customer charge. The Area EPS
Operator may charge Interconnection Customers an ongoing metering-related charge
for an estimate of ongoing metering-related costs specifically demonstrated.
9.2. Inspection, Testing and Commissioning
The Interconnection Customer shall arrange for the inspection and testing of the DER
system and the Customer's Interconnection Facilities prior to interconnection pursuant
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to Minnesota Technical Requirements. Commissioning tests of the Interconnection
Customer's installed equipment shall be performed pursuant to applicable codes and
standards of Minnesota's Technical Requirements and Section 15.
The Interconnection Customer shall notify the Area EPS Operator of testing and
inspection no fewer than five (5) Business Days in advance, or as may be agreed to by
the Parties. Depending on the process track, either a Certificate of Completion or a
testing procedure shall be submitted to the Area EPS Operator prior to the testing and
inspection date.The Area EPS Operator shall send qualified personnel to the DER site
to inspect the interconnection and witness the testing. Testing and inspection shall
occur on a Business Day at a mutually agreed upon time and date. The Area EPS
Operator may waive the right to witness the testing.
9.3. Interconnection Costs
The Interconnection Customer shall pay for the actual cost of the Interconnection
Facilities and Distribution Upgrades along with the Area EPS Operator's cost to
commission the proposed DER system. An estimate of the interconnection costs shall
be stated in the Uniform Contract or MMIA.
9.4. Technical Requirements
The Area EPS Operator shall use Reasonable Efforts to provide the Interconnection
Customer the Minnesota Technical Requirements by providing the document with the
notice of approval of the interconnection application or by providing a website link to
the document. Additionally, the Area EPS Operator shall notify the Interconnection
Customer of any changes to these requirements as soon as they are known. Unless
notified by the Area EPS Operator, the Interconnection Customer only needs to be in
compliance with the current version of the Minnesota Technical Requirements at the
time of interconnection.
9.5. Authorization for Parallel Operations
The Interconnection Customer shall not operate its DER system in parallel with the
Area EPS Operator's distribution system without prior written authorization from the
Area EPS Operator.The Area EPS Operator shall provide such authorization within
three (3) Business Days from when the Area EPS Operator receives notification that the
Interconnection Customer has complied with all applicable parallel operations
requirements; the completion of a successful testing and inspection of the DER system
and all payments for issued bills related to the interconnection process that are past
due have been paid in full. Such authorization shall not be unreasonably withheld,
conditioned or delayed.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
10 Extension of Timelines
10.1. Reasonable Efforts
The Area EPS Operator shall make Reasonable Efforts to meet all time frames provided
in these procedures. If the Area EPS Operator cannot meet a deadline provided herein,
it must notify the Interconnection Customer in writing within three (3) Business Days
after the deadline to explain the reason for the failure to meet the deadline and
provide an estimated time by which it will complete the applicable interconnection
procedure in the process.
10.2. Extensions
For applicable time frames described in these procedures, the Interconnection
Customer may request, in writing, one extension equivalent to half of the time
originally allotted (e.g., ten (10) Business Days for a twenty (20) Business Days original
time frame) which the Area EPS Operator may not unreasonably refuse. No further
extensions for the applicable time frame shall be granted absent a Force Majeure Event
or other similarly extraordinary circumstance.
11 Disputes
11.1. Procedures
The Parties agree to make good faith efforts to attempt to resolve all disputes arising
out of the interconnection process and associated study and Interconnection
Agreements. The Parties agree to follow the established dispute resolution policy
adopted by the Area EPS Operator.
12 Clauses
12.1. Confidentiality
Confidential Information shall mean any confidential and/or proprietary information
provided by one Party to the other Party that is clearly marked or otherwise designated
"Confidential." For purposes of these procedures, design, operating specifications, and
metering data provided by the Interconnection Customer may be deemed Confidential
Information regardless of whether it is clearly marked or otherwise designated as such.
If requested by either Party, the other Party shall provide in writing the basis for
asserting that the information warrants confidential treatment. Parties providing a
Governmental Authority trade secret, or privileged or otherwise not public or
nonpublic data under Minnesota Government Data Practices Act, Minnesota Statutes
Chapter 13, shall identify such data consistent with the Commission's September 1,
1999 Revised Procedures for Handling Trade Secret and Privileged Data available online
at: https://mn.gov/puc/puc-documents/#4.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Confidential Information does not include information previously in the public domain
with proper authorization, required to be publicly submitted or divulged by
Governmental Authorities (after notice to the other Party and after exhausting any
opportunity to oppose such publication or release), or necessary to be publicly divulged
in an action to enforce these procedures. Each Party receiving Confidential Information
shall hold such information in confidence and shall not disclose it to any third party nor
to the public without prior written authorization from the Party providing that
information, except to fulfill obligations under these procedures, or to fulfill legal or
regulatory requirements that could not otherwise be fulfilled by not making the
information public.
Each Party shall hold in confidence and shall not disclose Confidential Information, to
any person (except employees, officers, representatives and agents, who agree to be
bound by this section). Confidential Information shall be clearly marked as such on
each page or otherwise affirmatively identified. If a court, government agency or entity
with the right, power, and authority to do so, requests or requires either Party, by
subpoena, oral disposition, interrogatories, requests for production of documents,
administrative order, or otherwise, to disclose Confidential Information, that Party shall
provide the other Party with prompt notice of such request(s) or requirements(s) so
that the other Party may seek an appropriate protective order or waive compliance
with the terms of this Agreement. In the absence of a protective order or waiver the
Party shall disclose such confidential information which, in the opinion of its counsel,
the party is legally compelled to disclose. Each Party will use reasonable efforts to
obtain reliable assurance that confidential treatment will be accorded to any
confidential information furnished.
Critical infrastructure information or information that is deemed or otherwise
designated by a Party as Critical Energy/Electric Infrastructure Information (CEII)
pursuant to FERC regulation, 18 C.F.R. §388.133, as may be amended from time to
time, may be subject to further protections for disclosure as required by FERC or FERC
regulations or orders and the disclosing Party's CEII policies. Each Party shall employ at
least the same standard of care to protect Confidential Information obtained from the
other Party as it employs to protect its own Confidential Information.
Each Party is entitled to equitable relief, by injunction or otherwise, to enforce its rights
under this provision to prevent the release of Confidential Information without bond or
proof of damages and may seek other remedies available at law or in equity for breach
of this provision.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
12.2. Non-Warranty
The Area EPS Operator does not give any warranty, expressed or implied, as to the
adequacy, safety, or other characteristics of any structures, equipment, wires,
appliances or devices owned, operated, installed or maintained by the Interconnection
Customer, including without limitation the DER and any structures, equipment, wires,
appliances or devices not owned, operated or maintained by the Area EPS Operator.
The Area EPS Operator does not guarantee uninterrupted power supply to the DER and
will operate the Distribution System with the same reliability standards for the entire
customer base.
12.3. Indemnification
Each Party is protected from liability incurred to third parties as a result of carrying out
the provisions of this interconnection process and subsequent interconnection
agreements.The Parties shall at all times indemnify, defend, and save the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or inactions
of its obligations under this agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
This indemnification obligation shall apply notwithstanding any negligent or intentional
acts, errors or omissions of the indemnified Party, but the indemnifying Party's liability
to indemnify the indemnified Party shall be reduced in proportion to the percentage by
which the indemnified Party's negligent or intentional acts, errors or omissions caused
the damages.
Neither Party shall be indemnified for its damages resulting from its sole negligence,
intentional acts or willful misconduct. These indemnity provisions shall not be
construed to relieve any insurer of its obligation to pay claims consistent with the
provisions of a valid insurance policy.
If an indemnified person is entitled to indemnification under this article as a result of a
claim by a third party, and the indemnifying Party fails, after notice and reasonable
opportunity to proceed under this article, to assume the defense of such claim, such
indemnified person may at the expense of the indemnifying Party contest, settle or
consent to the entry of any judgment with respect to, or pay in full, such claim.
If an indemnifying party is obligated to indemnify and hold any indemnified person
harmless under this article, the amount owing to the indemnified person shall be the
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
amount of such indemnified person's actual loss, net of any insurance or other
recovery.
Promptly after receipt by an indemnified person of any claim or notice of the
commencement of any action or administrative or legal proceeding or investigation as
to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such
notification shall not affect a Party's indemnification obligation unless such failure or
delay is materially prejudicial to the indemnifying party.
12.4. Limitation of Liability
Each party's liability to the other party for any loss, cost, claim, injury, liability, or
expense, including reasonable attorney's fees, relating to or arising from any act or
omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either party be liable to the other party for
an indirect, incidental, special, consequential, or punitive damages of any kind
whatsoever, except as allowed under in Section 12.3.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
13 Glossary
Affected System—Another Area EPS Operator's System, Transmission Owner's Transmission
System, or Transmission System connected generation which may be affected by the proposed
interconnection.
Applicant Agent—A person designated in writing by the Interconnection Customer to represent
or provide information to the Area EPS on the Interconnection Customer's behalf throughout
the interconnection process.
Area EPS—The electric power distribution system connected at the Point of Common Coupling.
Area EPS Operator—An entity that owns, controls, or operates the electric power distribution
systems that are used for the provision of electric service in Minnesota. For this Interconnection
Process the Area EPS Operator is Elk River Municipal Utilities.
Business Day—Monday through Friday, excluding Holidays as defined by Minn. Stat. §645.44,
Subdivision 5. Any communication to have been sent or received after 4:30 p.m. Central
Prevailing Time or on a Saturday, Sunday or holiday shall be considered to have been sent on
the next Business Day.
Certified Equipment—Certified equipment is equipment that has been tested by a nationally
recognized lab meeting a specific standard. For DER systems, a UL 1741 listing is a common
form of DER inverter certification. Additional information is contained in Sections 14 and 15.
Confidential Information —Any confidential and/or proprietary information provided by one
Party to the other Party and is clearly marked or otherwise designated "Confidential." All
procedures, design, operating specifications, and metering data provided by the
Interconnection Customer may be deemed Confidential Information. See Section 12.1 for
further information.
Distributed Energy Resource (DER)—A source of electric power that is not directly connected
to a bulk power system or central station service. DER includes both generators and energy
storage technologies capable of exporting active power to an EPS. An interconnection system or
a supplemental DER device that is necessary for compliance with this standard is part of a DER.
For the purpose of the Interconnection Process and interconnection agreements, the DER
includes the Customer's Interconnection Facilities but shall not include the Area EPS Operator's
Interconnection Facilities.
Distribution System—The Area EPS facilities which are not part of the Local EPS,Transmission
System or any generation system.
Distribution Upgrades—The additions, modifications, and upgrades to the Distribution System
at or beyond the Point of Common Coupling to facilitate interconnection of the DER and render
the distribution service necessary to effect the Interconnection Customer's connection to the
Distribution System. Distribution Upgrades do not include Interconnection Facilities.
19
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Electric Power System (EPS)—The facilities that deliver electric power to a load.
Fast Track Process—The procedure as described in the Interconnection Process - Fast Track
Process for evaluating an Interconnection Application for a DER that meets the eligibility
requirements of Section 3.4.
Force Majeure Event—An act of God, labor disturbance, act of the public enemy, war,
insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or
equipment, an order, regulation or restriction imposed by governmental, military or lawfully
established civilian authorities, or another cause beyond a Party's control. A Force Majeure
Event does not include an act of negligence or intentional wrongdoing.
Good Utility Practice—Any of the practices, methods and acts engaged in or approved by a
significant portion of the electric industry during the relevant time period, or any of the
practices, methods and act which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish the desired
result at a reasonable cost consistent with good business practices, reliability, safety and
expedition. Good Utility Practice is not intended to be limited to the optimum practice, method,
or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts
generally accepted in the region.
Governmental Authority—Any federal, state, local or other governmental regulatory or
administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, or other governmental authority having
jurisdiction over the Parties, their respective facilities, or the respective services they provide,
and exercising or entitled to exercise any administrative, executive, police, or taxing authority
or power; provided, however, that such term does not include the Interconnection Customer,
the Area EPS Operator, or any Affiliate thereof. The governing authority of the municipal utility
is the authority governing interconnection requirements unless otherwise provided for in the
Minnesota Technical Requirements.
Interconnection Agreement—The terms and conditions between the Area EPS Operator and
Interconnection Customer (Parties). See Section 8 for when the Uniform Contract or Municipal
Minnesota Interconnection Agreement applies.
Interconnection Application—The Standard or Simplified Interconnection Application, as
applicable, pursuant to Section 4.
Interconnection Customer—The person or entity, including the Area EPS Operator, who will be
the owner of the DER and who proposes to interconnect a DER(s) with the Area EPS Operator's
Distribution System.The Interconnection Customer is responsible for ensuring the DER(s) is
designed, operated and maintained in compliance with the Minnesota Technical Requirements.
Interconnection Facilities—The Area EPS Operator's Interconnection Facilities and the
Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
include all facilities and equipment between the DER and the Point of Common Coupling,
including any modification, additions or upgrades that are necessary to physically and
electrically interconnect the DER to the Area EPS Operator's System. Some examples of
Customer Interconnection Facilities include supplemental DER devices, inverters, and
associated wiring and cables up to the Point of DER Connection. Some examples of Area EPS
Operator Interconnection Facilities include sole use facilities; such as, line extensions, controls,
relays, switches, breakers, transformers and shall not include Distribution Upgrades or Network
Upgrades.
Interconnection Process—The Area EPS Operator's interconnection standards in this
document.
Material Modification—A modification to machine data, equipment configuration or to the
interconnection site of the DER at any time after receiving notification by the Area EPS
Operator of a complete Interconnection Application that has a material impact on the cost,
timing, or design of any Interconnection Facilities or Upgrades, or a material impact on the cost,
timing or design of any Interconnection Application with a later Queue Position or the safety or
reliability of the Area EPS.6
MN Technical Requirements—The term including all of the DER technical interconnection
requirement documents for the state of Minnesota; including Attachment 2 Distributed
Generation Interconnection Requirements established in the Commission's September 28, 2004
Order in E-999/CI-01-1023) until superseded and upon Commission approval of updated
Minnesota DER Technical Interconnection and Interoperability Requirements in E-999/CI-16-
521 (anticipated July 2019.)
Nameplate Rating— nominal voltage (V), current (A), maximum active power (kWac), apparent
power (kVA), and reactive power(kVar) at which a DER is capable of sustained operation. For a
Local EPS with multiple DER units, the aggregate nameplate rating is equal to the sum of all
DERs nameplate rating in the Local EPS. For purposes of the Attachment V in the
Interconnection Agreement, the DER system's capacity may, with the Area EPS's agreement, be
6 A Material Modification shall include,but may not be limited to,a modification from the approved
Interconnection Application that: (1)changes the physical location of the point of common coupling such that it is
likely to have an impact on technical review;(2)increases the nameplate rating or output characteristics of the
Distributed Energy Resource;(3)changes or replaces generating equipment,such as generator(s),inverter(s),
transformers,relaying,controls,etc.,and substitutes equipment that is not like-kind substitution in certification,size,
ratings,impedances,efficiencies or capabilities of the equipment; (4)changes transformer connection(s)or
grounding;and/or(5)changes to a certified inverter with different specifications or different inverter control settings
or configuration.A Material Modification shall not include a modification from the approved Interconnection
Application that: (1)changes the ownership of a Distributed Energy Resource;(2)changes the address of the
Distributed Energy Resource,so long as the physical point of common coupling remains the same;(3)changes or
replaces generating equipment such as generator(s), inverter(s),solar panel(s),transformers,relaying,controls,etc.
and substitutes equipment that is a like-kind substitution in certification,size,ratings, impedances,efficiencies or
capabilities of the equipment;and/or(4)increases the DC/AC ratio but does not increase the maximum AC output
capability of the Distributed Energy Resource in a way that is likely to have an impact on technical review.
21
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
limited thought use of control systems, power relays or similar device settings or adjustments
as identified in IEEE 1547. The nameplate ratings referenced in the Interconnection Process are
alternating current nameplate DER ratings at the Point of DER Coupling.
Network Upgrades—Additions, modifications, and upgrades to the Transmission System
required at or beyond the point at which the DER interconnects with the Area EPS Operator's
System to accommodate the interconnection with the DER to the Area EPS Operator's System.
Network Upgrades do not include Distribution Upgrades.
Operating Requirements—Any operating and technical requirements that may be applicable
due to the Transmission Provider's technical requirements or Minnesota Technical
Requirements, including those set forth in the Interconnection Agreement.
Party or Parties—The Area EPS Operator and the Interconnection Customer.
Point of Common Coupling (PCC)—The point where the Interconnection Facilities connect with
the Area EPS Operator's Distribution System. See figure 1. Equivalent, in most cases, to "service
point" as specified by the Area EPS Operator and described in the National Electrical Code and
the National Electrical Safety Code.
Area Electric Power System(Area EPS)
Point of Common I
upling(PCC) r-�PCC X PCC
Po111
C PoC PoC
5.1
PoC
Distributed Distributed s. Supplem
Energy Energy DER Device
Resource Resource '
{DfR)unit IDER)unit
Local EPS 1 _aa!EPS 3 Distributed
Energy
�+ PCC,—if Resource
PCC (DE,R)unit)
�
Point of DER �—► PoC �
connection
(Poe) i
i•' 'r Distributed
Energy ••emental Energy Distributed
Res `r R Device Resource Energy
(DER) ,o (DER)unit Resource
aX (DER)unit
local EPS 2 Lcca:EPsd tc.al Cc'S
Figure 1: Point of Common Coupling and Point of DER Connection (Source: IEEE 1547)
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Point of DER Connection (PoC)—When identified as the Reference Point of Applicability, the
point where an individual DER is electrically connected in a Local EPS and meets the
requirements of this standard exclusive of any load present in the respective part of the Local
EPS (e.g. terminals of the inverter when no supplemental DER device is required). For DER
unit(s)that are not self-sufficient to meet the requirements without a supplemental DER
device(s), the Point of DER Connection is the point where the requirements of this standard are
met by DER in conjunction with a supplemental DER device(s) exclusive of any load present in
the respective part of the Local EPS.
Queue Position—The order of a valid Interconnection Application, relative to all other pending
valid Interconnection Applications, that is established based upon the date- and time- of receipt
of the complete Interconnection Application as described in Section 4.7.
Reasonable Efforts—With respect to an action required to be attempted or taken by a Party
under these procedures, efforts that are timely and consistent with Good Utility Practice and
are otherwise substantially equivalent to those a Party would use to protect its own interests.
Reference Point of Applicability—The location, either the Point of Common Coupling or the
Point of DER Connection, where the interconnection and interoperability performance
requirements specified in IEEE 1547 apply. With mutual agreement, the Area EPS Operator and
Customer may determine a point between the Point of Common Coupling and Point of DER
Connection. See Minnesota Technical Requirements for more information.
Simplified Process—The procedure for evaluating an Interconnection Application for a certified
inverter-based DER no larger than 20 kW that uses the screens described in the Interconnection
Process—Simplified Process document. The Simplified Process includes simplified procedures.
Study Process—The procedure for evaluating an Interconnection Application that includes the
scoping meeting, system impact study, and facilities study.
Transmission Owner—The entity that owns, leases or otherwise possesses an interest in the
portion of the Transmission System relevant to the Interconnection.
Transmission Provider—The entity (or its designated agent) that owns, leases, controls, or
operates transmission facilities used for the transmission of electricity. The term Transmission
Provider includes the Transmission Owner when the Transmission Owner is separate from the
Transmission Provider.The Transmission Provider may include the Independent System
Operator or Regional Transmission Operator.
Transmission System—The facilities owned, leased, controlled or operated by the Transmission
Provider or the Transmission Owner that are used to provide transmission service. See the
Commission's July 26, 2000 Order Adopting Boundary Guidelines for Distinguishing
Transmission from Generation and Distribution Assets in Docket No. E-999/CI-99-1261.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Uniform Contract—the Area EPS Operator's Agreement for Cogeneration and Small Power
Production Facilities (Uniform Contract) that may be applied to all qualifying new and existing
interconnections between the Area EPS Operator and a DER system having capacity less than
40 kilowatts.
Upgrades—The required additions and modifications to the Area EPS Operator's Transmission
or Distribution System at or beyond the Point of Interconnection. Upgrades may be Network
Upgrades or Distribution Upgrades. Upgrades do not include Interconnection Facilities.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
14 Certification of DER Equipment
Distributed Energy Resource (DER) equipment proposed for use in an interconnection system
shall be considered certified for interconnected operation if the following criteria is met:
1) It has been tested in accordance with industry standards for continuous utility
interactive operation in compliance with the appropriate codes and standards
referenced below by any Nationally Recognized Testing Laboratory (NRTL) recognized by
the United States Occupational Safety and Health Administration to test and certify
interconnection equipment pursuant to the relevant codes and standards listed in the
Overview Process,
2) It has been labeled and is publicly listed by such NRTL at the time of the interconnection
application, and
3) Such NRTL makes readily available for verification all test standards and procedures it
utilized in performing such equipment certification, and, with consumer approval, the
test data itself.The NRTL may make such information available on its website and by
encouraging such information to be included in the manufacturer's literature
accompanying the equipment.
The Interconnection Customer must verify that the assembly and use of the equipment falls
within the use or uses for which the equipment was tested, labeled, and listed by the NRTL.
Certified equipment shall not require further type-test review, testing, or additional equipment
to meet the requirements of this interconnection procedure; however, nothing herein shall
preclude the need for a DER Design Evaluation or an on-site commissioning test by the parties
to the interconnection as provided for in the Minnesota Technical Requirements.
If the certified equipment package includes only interface components (switchgear, inverters,
or other interface devices), then an Interconnection Customer must show that the generator or
other electric source being utilized with the equipment package is compatible with the
equipment package and is consistent with the testing and listing specified for this type of
interconnection equipment.
Provided the generator or electric source, when combined with the equipment package, is
within the range of capabilities for which it was tested by the NRTL and does not violate the
interface components' labeling and listing performed by the NRTL, no further type-test review,
testing or additional equipment on the customer side of the Point of Common Coupling shall be
required to be considered certified for the purposes of this interconnection procedure;
however, nothing herein shall preclude the need for a DER design evaluation or an on-site
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
commissioning test by the parties to the interconnection as provided for in the Minnesota
Technical Requirements.
An equipment package does not include equipment provided by the Area EPS.
26
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
15 Certification Codes and Standards
The existing Minnesota Technical Requirements and the following standards shall be used in
conjunction with the Interconnection Process. The process has started to update the Technical
Requirements to meet IEEE 1547-2018. Once that process is completed, the updated DER
Technical Interconnection and Interoperability Requirements will supersede this section.
When the stated version of the following standards is superseded by an approved revision then
that revision shall apply:
IEEE 1547-2003 IEEE Standard for Interconnecting Distributed Resources with Electric
Power Systems
IEEE 1547a-2014 IEEE Standard for Interconnecting Distributed Resources with Electric
Power Systems—Amendment 1
IEEE 1547.1-2005 IEEE Standard Conformance Test Procedures for Equipment
Interconnecting Distributed Resources with Electric Power Systems
IEEE 1547.1a-2015 (Amendment to IEEE Std 1547.1-2005) IEEE Standard Conformance
Test Procedures for Equipment Interconnecting Distributed Resources with Electric
Power Systems—Amendment 1
UL 1741 Inverters, Converters, Controllers, and Interconnection System Equipment for
Use in Distributed Energy Resources (2010)
NFPA 70 (2017), National Electrical Code
IEEE Std C37.90.1 (2012) (Revision of IEEE Std C37.90.1-2002), IEEE Standard for Surge
Withstand Capability (SWC)Tests for Protective Relays and Relay Systems Associated
with Electric Power Apparatus
IEEE Std C37.90.2 (2004) (Revision of IEEE Std C37.90.2-1995), IEEE Standard for
Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from
Transceivers
IEEE Std C37.108-20021989 (Revision of C37.108-19892002), IEEE Guide for the
Protection of Network Transformers
IEEE Std C57.12.44-2014 (Revision of IEEE Std C57.12.44-2005), IEEE Standard
Requirements for Secondary Network Protectors
27
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
IEEE Std C62.41.2-2002, IEEE Recommended Practice on Characterization of Surges in
Low-Voltage (1000 V and Less)AC Power Circuits
IEEE Std C62.41.2-2002_Cor 1-2012 (Corrigendum to IEEE Std C62.41.2-2002)—IEEE
Recommended Practice on Characterization of Surges in Low-Voltage (1000 V and Less)
AC Power Circuits Corrigendum 1: Deletion of Table A.2 and Associated Text
IEEE Std C62.45-2002 (Revision of IEEE Std C62.45-1992)—IEEE Recommended Practice
on Surge Testing for Equipment Connected to Low-Voltage (1000 V and less) AC Power
Circuits
ANSI C84.1-(2016) Electric Power Systems and Equipment—Voltage Ratings (60 Hertz)
IEEE Standards Dictionary Online, [Online]
NEMA MG 1-2016, Motors and Generators
IEEE Std 519-2014, IEEE Recommended Practices and Requirements for Harmonic
Control in Electrical Power Systems
28
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
AEI' _
s
r.'`
.. ..a
ABSTRACT
Information in addition to the "Process
1 Overview" for interconnecting Distributed Energy
Resources of up to 20 kilowatts in size to the
Owatonna Public Utility's 10 kW Demonstration Solar utility distribution system.
Owatonna, MN
INTERCONNECTION
PROCESS
Simplified Process
164
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Contents
1 Applicability 1
1.1. Capacity Limit 1
1.2. Certified Inverters 1
2 Application Submission 1
2.1. Simplified Process Application 1
2.2. Battery Storage 1
2.3. Site Control 2
3 Application Review 2
3.1. Timelines 2
3.2. Initial Review Screens 3
3.3. Notification of Approval of Application 4
3.4. Failure of Review Screens 4
4 Interconnection Agreement 5
4.1. Uniform Contract 5
4.2. Municipal Minnesota Interconnection Agreement 5
4.3. Completion of Agreement 5
5 Insurance 6
5.1. Insurance Requirements 6
5.2. Self-Insurance 6
5.3. Proof of Insurance 6
6 Timeline Extensions 7
6.1. Reasonable Efforts 7
6.2. Extensions 7
7 Modifications to Application 7
7.1. Procedures 7
7.2. Timelines 7
8 Interconnection 8
8.1. Metering 8
8.2. Construction 8
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
8.3. Inspection, Testing and Commissioning 8
8.4. Interconnection Costs 9
8.5. Authorization for Parallel Operation 10
8.6. Continual Compliance 10
8.7. Disconnection of DER 10
ii
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
1 Applicability
1.1. Capacity Limit
The Simplified Process only is applicable to certified inverter-based Distributed Energy
Resource (DER) systems with the capacity of 20 kW AC or less. The capacity is
determined by the aggregated summation of the Nameplate Rating of the inverters
that make up the DER system. Additional information regarding the capacity limits can
be seen in Section 6 of the Process Overview document.
1.2. Certified Inverters
A certified inverter will have certification of meeting the current version of the IEEE
standard 1547. A common inverter certification is UL 1741. Note that certified inverters
may still need to have a setting adjusted to meet the technical requirements of the
Area EPS Operator. Additional information regarding certified equipment is found in
Section 14 and Section 15 of the Process Overview document.
2 Application Submission
2.1. Simplified Process Application
The Interconnection Customer shall complete the Simplified Interconnection
Application and submit it to the Area EPS Operator to initialize the Interconnection
Process. A completed Simplified Interconnection Application will include the following:
• A completed Simplified Interconnection Application signed by the
Interconnection Customer,
• A non-refundable processing fee of$100,
• An aerial site layout drawing of the proposed DER system,
• A one-line diagram of the proposed DER system showing the point of common
coupling, PCC, to the Area EPS Operator's Distribution System, and
• All certified equipment manufacturer specification sheets.
2.2. Battery Storage
An inverter-based DER system may include battery storage. DER systems that include
battery storage must also complete the Energy Storage Application with the Simplified
Interconnection Application.
1
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
2.3. Site Control
By signing the Simplified Interconnection Application, the Interconnection Customer is
indicating that the proposed DER system is being located where the Interconnection
Customer has site control. Site control includes ownership of, a leasehold interest in, or
a right to develop a site for the purpose of construction of a DER. Additional
information regarding Site Control can be reviewed in the Process Overview document
in Section 4.8.
3 Application Review
3.1. Timelines
The Interconnection Application shall be date- and time-stamped upon initial, and if
necessary, resubmission receipt. The Interconnection Customer shall be notified of
receipt by the Area EPS Operator within ten (10) Business Days of receipt of the
Interconnection Application.
The Area EPS Operator shall notify the Interconnection Customer if the Interconnection
Application is deemed incomplete within ten (10) Business Days and provide a written
list detailing all information that must be provided to complete the Interconnection
Application.The Interconnection Customer has five (5) Business Days to provide the
missing information unless additional time is requested with valid reasons. Failure to
submit the requested information within the stated timeline will deem the
Interconnection Application withdrawn. The Area EPS Operator has an additional five
(5) Business Days to review the additionally provided information for completeness.
An Interconnection Application will be deemed complete upon submission to the Area
EPS Operator provided all documents, fees and information required with the
Interconnection Application adhering to Minnesota Technical Requirements is
included.The time-and date- stamp of the completed Interconnection Application shall
be accepted as the qualifying date for the purpose of establishing a queue position as
described in Section 4.7 of the Overview Process document.
The Area EPS Operator has a total of twenty (20) Business Days to complete the
Interconnection Application review from the receipt of a completed Interconnection
Application and submit notice back to the Interconnection Customer stating the
proposed DER system may proceed with the interconnection process or the proposed
DER system has been moved into a different process track. The time during which the
Interconnection Customer provides missing information is not included in the Area EPS
Operator's twenty (20) Business Days review timeline.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
3.2. Initial Review Screens
The Area EPS Operator shall determine if the DER can be interconnected safely and
reliably using Initial Review Screens and without the construction of facilities by the
Area EPS Operator. The Initial Review screens include the following engineering
screens:
• The proposed DER's PCC must be on a portion of the Area EPS Operator's
Distribution System.
• For interconnection of a proposed DER to a radial distribution circuit, the
aggregated generation, including the proposed DER, on the circuit shall not
exceed 15% of the line section annual peak load as most recently measured or
100%of the substation aggregated minimum load. A line section is that portion
of an Area EPS Operator's electric system connected to a customer bounded by
automatic sectionalizing devices or the end of the distribution line.The Area
EPS Operator may consider 100%of applicable loading (i.e. daytime minimum
load for solar), if available, instead of 15% of line section peak load.
• For interconnection of a proposed DER to the load side of network protectors,
the proposed DER must utilize an inverter-based equipment package and,
together with the aggregated other inverter-based DERs, shall not exceed the
smaller of 5%of a network's maximum load or 50 kW.'
• The proposed DER, in aggregation with other DERs on the distribution circuit,
shall not contribute more than 10%to the distribution circuit's maximum fault
current at the point on the high voltage (primary) level nearest the proposed
PCC.
• The proposed DER, in aggregate with other Distributed Energy Resources on the
distribution circuit, shall not cause any distribution protective devices and
equipment (including, but not limited to, substation breakers, fuse cutouts, and
line reclosers), or Interconnection Customer equipment on the system to
exceed 87.5% of the short circuit interrupting capability; nor shall the
interconnection be proposed for a circuit that already exceeds 87.5%of the
short circuit interrupting capability.
1 Network protectors are protective devices used on secondary networks (spot and grid networks)to
automatically disconnect their associated transformers when reverse power flow occurs.Secondary
networks are most often used in densely populated downtown areas.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
• Using the table below, determine the type of interconnection to a primary
distribution line. This screen includes a review of the type of electrical service
provided to the Interconnecting Customer, including line configuration and the
transformer connection to limit the potential for creating over-voltages on the
Area EPS Operator's electric power system due to a loss of ground during the
operating time of any anti-islanding function.
Primary Distribution Type of Interconnection to Results
Line Type Primary Distribution Line
Three-Phase, three wire Three-phase or single-phase, Pass Screen
phase-to-phase
Three-phase, four wire Effectively-grounded three-phase Pass Screen
or single-phase, line-to-neutral
• If the proposed DER is to be interconnected on single-phase shared secondary,
the aggregate generation capacity on the shared secondary, including the
proposed DER, shall not exceed 20 kW or 65% of the transformer nameplate
rating.
• If the proposed DER is single-phase and is to be interconnected on a center tap
neutral of a 240-volt service, its addition shall not create an imbalance between
the two sides of the 240-volt service of more than 20%of the nameplate rating
of the service transformer.
The technical screens listed shall not preclude the Area EPS Operator from using tools
that perform screening functions using different methodologies given the analysis is
aimed at preventing the voltage, thermal and protection limitations as the listed
screen.
3.3. Notification of Approval of Application
Provided the Simplified Interconnection Application passes the initial screens, or if the
proposed interconnection fails the screens but the Area EPS Operator determines that
the DER may never the less be interconnected consistent with safety, reliability and
power quality standards, the Area EPS Operator shall provide notice to the
Interconnection Customer that their Simplified Interconnection Application has been
approved.
3.4. Failure of Review Screens
If the proposed interconnection fails the screens the Interconnection Customer will be
notified by the Area EPS Operator that the Simplified Interconnection Application has
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
been moved to the Fast Track Process.The Area EPS Operator shall provide the
Interconnection Customer the opportunity to attend a customer options meeting.
Additional information regarding the customer options meeting is found in Section 3.5
of the Fast Track Process document. The Interconnection Customer will need to
provide a completed Interconnection Application to the Area EPS Operator prior to, or
at the customer options meeting.
The Area EPS Operator shall notify the Interconnection Customer of the determination
and provide copies of all directly pertinent data and analyses underlying its conclusion,
subjected to confidentiality provisions in Section 12.1 of the Overview Process
document.
4 Interconnection Agreement
4.1. Uniform Contract
The Area EPS Operator shall provide the Interconnection Customer with an executable
copy of the Area EPS Operator's Contract for Cogeneration and Small Power Production
Facilities (Uniform Contract) within five (5) Business Days of notice of approval of the
Simplified Interconnection Application.
4.2. Municipal Minnesota Interconnection Agreement
The Interconnection Customer may request on the Simplified Interconnection
Application an executable copy of the Area EPS Operator's Municipal Minnesota
Interconnection Agreement (MMIA) in lieu of signing the Uniform Contract. If the
MMIA is requested, the Area EPS Operator shall provide an executable copy of the
MMIA within five (5) Business Days of notice of approval of the Simplified
Interconnection Application.
4.3. Completion of Agreement
The Interconnection Customer must return a signed Uniform Contract or MMIA at least
thirty (30) Business Days prior to a requested in-service date of the propose DER.The
Area EPS Operator shall sign and return a copy of the fully executed Uniform Contract
or the MMIA back to the Interconnection Customer.
The Interconnection Customer may update the requested in-service date submitted on
the Simplified Interconnection Application to a date thirty (30) Business Days or later
from the date on which the Interconnection Customer submits a signed Uniform
Contract or MMIA and payment, if required, unless the Area EPS Operator agrees to an
earlier date.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Upon receipt of the signed Uniform Contract or MMIA, the Area EPS Operator may
schedule appropriate metering replacements and construction of facilities, if necessary.
5 Insurance
5.1. Insurance Requirements
At minimum, the Interconnection Customer shall maintain, for the duration the DER
system is interconnected to the Area EPS Operator's Distribution System, $300,000 of
general liability insurance from a qualified insurance agency with a B+ or better rating
by "Best." Such general liability insurance shall include coverage against claims for
damages resulting from (i) bodily injury, including wrongful death; and (ii) property
damage arising out of the Interconnection Customer's ownership and/or operation of
the DER under this agreement. Evidence of the insurance shall state that coverage
provided is primary and is not excess to or contributing with any insurance or self-
insurance by the Area EPS Operator.
5.2. Self-Insurance
The Interconnection Customer may choose to be self-insured provided there is an
established record of self-insurance. The Interconnection Customer shall supply the
Area EPS Operator at least twenty (20) days prior to the date of initial operation,
evidence of an acceptable plan to self-insure to a level of coverage equivalent to that
required in Section 5.1. Failure of the Interconnection Customer or the Area EPS
Operator to enforce the minimum levels of insurance does not relieve the
Interconnection Customer from maintaining such levels of insurance or relieve the
Interconnection Customer of any liability.
5.3. Proof of Insurance
Prior to initial operation of the DER, the Interconnection Customer shall furnish the
Area EPS Operator with the Declarations page of the Homeowner's insurance policy
documenting insurance of the DER, if applicable or other insurance certificates and
endorsements documenting insurance. Thereafter, the Area EPS Operator shall have
the right to periodically inspect or obtain a copy of the original policy or polices of
insurance. Additionally, the Area EPS Operator may request to be additionally listed as
an interested third party on the insurance certificates and endorsements to meet the
right to periodically obtain a copy of the policy or policies of insurance.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
6 Timeline Extensions
6.1. Reasonable Efforts
The Area EPS Operator shall make Reasonable Efforts to meet all time frames provided
in these procedures. If the Area EPS Operator cannot meet a deadline provided herein,
it must notify the Interconnection Customer in writing within three (3) Business Days
after the deadline to explain the reason for the failure to meet the deadline and
provide an estimated time by which it will complete the applicable interconnection
procedure in the process.
6.2. Extensions
For applicable time frames described in these procedures, the Interconnection
Customer may request in writing one extension equivalent to half of the time originally
allotted (e.g., ten (10) Business Days for a twenty (20) Business Days original time
frame) which the Area EPS Operator may not unreasonably refuse. No further
extensions for the applicable time frame shall be granted absent a Force Majeure Event
or other similarly extraordinary circumstance.
7 Modifications to Application
7.1. Procedures
At any time after the Interconnection Application is deemed complete, the
Interconnection Customer or the Area EPS Operator may identify modifications to the
proposed DER system that may improve costs and benefits (including reliability) of the
proposed DER system and the ability for the Area EPS Operator to accommodate the
proposed DER system. The Interconnection Customer shall submit to the Area EPS
Operator in writing all proposed modifications to any information provided in the
Interconnection Application. The Area EPS Operator cannot unilaterally modify the
Interconnection Application.
7.2. Timelines
Within ten (10) Business Days of receipt of the proposed modification, the Area EPS
Operator shall evaluate whether the proposed modification to the Interconnection
Application constitutes a Material Modification. The definition in Section 13 Glossary of
the Process Overview document includes examples of what does and does not
constitute a Material Modification.
The Area EPS Operator shall notify the Interconnection Customer in writing of the final
determination of the proposed modification. For proposed modifications that are
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
determined to be a Material Modification the Interconnection Customer may choose to
either: 1) withdraw the proposed modification; or 2) proceed with a new
Interconnection Application. The Interconnection Customer shall provide its
determination in writing to the Area EPS Operator within ten (10) Business Days after
being provided the Material Modification determination. If the Interconnection
Customer does not provide its determination within the timeline, the Interconnection
Application shall be considered withdrawn.
If the proposed modification is not determined to be a Material Modification, then the
Area EPS Operator shall notify the Interconnection Customer in writing that the
modification has been accepted and the Interconnection Customer shall retain its
eligibility for interconnection, including its place in the queue.
8 Interconnection
8.1. Metering
Any metering requirements necessitated by the use of the DER system shall be installed
at the Interconnection Customer's expense. The metering requirement costs will be
included in the final invoice of interconnection costs to the Interconnection Customer.
The Interconnection Customer is also responsible for metering replacement costs not
covered in the Interconnection Customer's general customer charge. The Area EPS
Operator may charge Interconnection Customers an ongoing metering-related charge
for an estimate of ongoing metering-related costs specifically demonstrated.
8.2. Construction
The Interconnection Customer may proceed to construct (including operational testing
not to exceed two hours) the DER system when the Area EPS Operator has approved
the Simplified Interconnection Application. Upon receipt of a signed Uniform Contract
or MMIA the Area EPS Operator shall schedule and execute appropriate construction of
facilities, if necessary, which shall be completed prior to the Interconnection Customer
returning the Certification of Completion.The Area EPS Operator will notify the
Interconnection Customer when construction of the distribution facilities is completed.
8.3. Inspection, Testing and Commissioning
Upon completing construction of the DER system, the Interconnection Customer will
cause the DER system to be inspected or otherwise certified by the appropriate local
electrical wiring inspector with jurisdiction. The Interconnection Customer shall then
arrange for the inspection and testing of the DER system and the Customer's
Interconnection Facilities prior to interconnection pursuant to Minnesota Technical
Requirements. Commissioning test of the Interconnection Customer's installed
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
equipment shall be performed pursuant to applicable codes and standards of
Minnesota's Technical Requirements. The Interconnection Customer shall provide the
Area EPS Operator with a Certificate of Completion after completion of the DER
installation.
Prior to parallel operation, the Area EPS Operator may inspect the DER for compliance
with standards, which may include a witness test, and schedule appropriate metering
replacements, if necessary. The Area EPS Operator shall send qualified personnel to the
DER site to inspect the interconnection and witness the testing but bears no liability for
the results of the test.
The Area EPS Operator is obligated to complete the witness test, if required, within ten
(10) Business Days of receipt of the Certification of Completion. If the Area EPS
Operator does not inspect within ten (10) Business Days, the witness test is deemed
waived unless upon mutual agreement of both Parties to extend the timeline for the
witness test.
Within three (3) Business Days of satisfactory inspection or waiver of inspection, the
Area EPS Operator shall provide the Interconnection Customer written
acknowledgment that the DER has permission to operate. Such written
acknowledgment shall not be deemed to be or construed as any representation,
assurance, guarantee, or warranty by the Area EPS Operator of the safety, durability,
suitability, or reliability of the DER or any associated control, protective, and safety
devices owned or controlled by the Interconnection Customer or the quality of power
produced by the DER.
If the witness test is not satisfactory, the Area EPS Operator has the right to disconnect
the DER.The Interconnection Customer has no right to operate in parallel, except for
optional testing not to exceed two hours, until permission to operate is granted by the
Area EPS Operator.
8.4. Interconnection Costs
The Interconnection Customer shall pay for the actual cost of the Interconnection
Facilities and Distribution Upgrades along with the Area EPS Operator's cost to
commission the proposed DER system. An estimate of the interconnection costs shall
be stated in the Uniform Contract or MMIA. The Area EPS Operator shall render the
final interconnection cost invoice to the Interconnection Customer within thirty (30)
Business Days after the proposed DER system has been commissioned by the Area EPS
Operator, or upon the commissioning being waived by the Area EPS Operator. The
Interconnection Customer shall make payment to the Area EPS Operator within
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
twenty-one (21) Business Days of receipt, or as otherwise stated in the Uniform
Contract.
The Area EPS Operator does not give any warranty, expressed or implied, as to the
adequacy, safety, or other characteristics of any structures, equipment, wires,
appliances or devices owned, operated, installed or maintained by the Interconnection
Customer, including without limitation the DER and any structures, equipment, wires,
appliances or devices not owned, operated or maintained by the Area EPS Operator.
8.5. Authorization for Parallel Operation
The Interconnection Customer shall not operate its DER system in parallel with the
Area EPS Operator's Distribution System without prior written authorization from the
Area EPS Operator.The Area EPS Operator shall provide such authorization within
three (3) Business Days from when the Area EPS Operator receives the Certificate of
Completion and notification the Interconnection Customer has complied with all
applicable parallel operations requirements. Such authorization shall not be
unreasonably withheld, conditioned or delayed.
8.6. Continual Compliance
The Interconnection Customer shall be fully responsible for operating, maintaining, and
repairing the DER as required to ensure that it complies at all times with the
interconnection standards to which it has been certified. The Interconnection
Customer shall also operate its DER system in compliance with the Area EPS Operator's
technical requirements as referred to in the executed Uniform Contract or MMIA. The
Area EPS Operator may periodically inspect, at its own expense,the operation of DER
system as it relates to power quality, thermal limits and reliability. Failure by the
Interconnection Customer to remain in compliance with the technical requirements will
result in the DER system's disconnection from the Area EPS Operator's Distribution
System.
8.7. Disconnection of DER
The Area EPS Operator has the right to disconnect the DER in the event the
Interconnection Customer:
• Does not continue to follow and maintain IEEE 1547 settings approved by the Area
EPS Operator as indicated by the adopted technical requirements.
• Does not meet all the requirements of the Simplified Process.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
• Refuses to sign either the Interconnection Agreement or the Area EPS Operator's
Uniform Contract.
The Area EPS Operator may temporarily disconnect the DER upon the following
conditions:
• For scheduled outages upon reasonable notice.
• For unscheduled outages or emergency conditions.
• If the DER does not operate in a manner consistent with the Simplified Process.
The Area EPS Operator shall inform the Interconnection Customer in advance of any
scheduled disconnections, or as reasonable, after an unscheduled disconnection.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
",01.1,0 -14
ABSTRACT
Information in addition to the "Process
Overview" for interconnecting Distributed
Energy Resources smaller than 4 megawatts
in size that do not qualify for the "Simplified
Process."
St. Cloud Utility's 220 kW Wastewater Solar Array
St. Cloud, MN
INTERCONNECTION
PROCESS
Fast Track Process
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Contents
1 Applicability 1
1.1. Capacity Limit 1
1.2. Codes, Standards and Certification Requirements 1
2 Application Submission 2
2.1. Fast Track Process Application 2
2.2. Professional Licensed Engineer Signature 2
2.3. Processing Fee 2
2.4. Battery Storage 3
2.5. Site Control 3
3 Application Review 3
3.1. Timelines 3
3.2. Initial Review Screens 4
3.3. Notification of Approval of Application 6
3.4. Failure of Review Screens 6
3.5. Customer Options Meeting 6
4 Supplemental Review 7
4.1. Acceptance of Supplemental Review 7
4.2. Supplemental Review Costs 7
4.3. Supplemental Review Timelines 7
4.4. Supplemental Review Screens 8
4.5. Identification of Construction of Facilities 10
4.6. Supplemental Review Results 10
5 Interconnection Agreement 11
5.1. Uniform Contract 11
5.2. Municipal Minnesota Interconnection Agreement 11
5.3. Completion of Agreement 11
6 Insurance 12
6.1. Insurance Requirements 12
6.2. Self-Insurance 12
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
6.3. Proof of Insurance 13
7 Timeline Extensions 13
7.1. Reasonable Efforts 13
7.2. Extensions 13
8 Modifications to Application 13
8.1. Procedures 13
8.2. Timelines 14
9 Interconnection 14
9.1. Interconnection Milestones 14
9.2. Metering 15
9.3. Construction 15
9.4. Inspection, Testing and Commissioning 15
9.5. Interconnection Costs 16
9.6. Security of Payment 17
9.7. Non-Warranty 18
9.8. Authorization for Parallel Operation 18
9.9. Continual Compliance 19
9.10. Disconnection of DER 19
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
1 Applicability
1.1. Capacity Limit
The Fast Track Process is available to an Interconnection Customer proposing to
interconnect a Distributed Energy Resource (DER)with the Area EPS Operator's
Distribution System if the DER capacity does not exceed the size limits in Table 1.1 and
does not qualify for the Simplified Process. The capacity is determined by the
aggregated summation of the Nameplate Rating of all components that make up the
DER system. Additional information regarding the capacity limits can be seen in Section
6 of the Process Overview document.
Table 1.1. Fast Track Eligibility for DER
1 Fast Track Eligibility for certified,
Fast Track Eligibility z
inverter-based DER on a Mainline
Line Voltage Regardless of
and <_2.5 Electrical Circuit Miles from
Location
Substation3
< 5 kV <_500 kW <_500 kW
>_ 5kV and < 15kV <_ 1MW 52MW
>_ 15kV and <30kV <_3MW 54MW
>_30kV and <_69kV <_4MW <_ 5MW
Fast Track eligibility for DERs is determined based upon the generator type, the size of
the generator, voltage of the line, and the location of and the type of line at the Point
of Common Coupling. All synchronous and induction machines must be no larger than 2
MW to be eligible for Fast Track Process consideration. Fast Track eligibility does not
imply or indicate that a DER will pass the engineering screens or be exempt from the
proposed DER Interconnection being placed into the Study Process.
1.2. Codes, Standards and Certification Requirements
The Interconnection Customer's proposed DER must meet the codes, standards and
certification requirements listed in Section 14 and Section 15 of the Overview Process
document.The Area EPS Operator may allow DER systems that do not meet codes,
standards and certification only if the DER system design is reviewed and tested and
determined that it is safe to operate in parallel with the Distribution System.
1 Synchronous and induction machine eligibility is limited to no more than 2 MW even when line voltage is greater
than 15 kV.
2 For purposes of this table,a Mainline is the three-phase backbone of a circuit. It will typically constitute lines with
wire sizes of 4/0 American wire gauge,266 kcmil,336.4 kcmil,397.5 kcmil,477 kcmil and 795 kcmil.
3 An Interconnection Customer can determine this information about its proposed interconnection location in
advance by requesting a pre-application report described in the Overview Process document.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
2 Application Submission
2.1. Fast Track Process Application
The Interconnection Customer shall complete the Standard Interconnection Application
and submit it to the Area EPS Operator to initialize the Interconnection Process. A
completed Interconnection Application will include the following:
• A completed Interconnection Application signed by the Interconnection
Customer.
• A non-refundable processing fee indicated in Section 2.3.
• A site layout drawing of the proposed DER system.
• A one-line diagram of the proposed DER system showing the point of common
coupling to the Area EPS Operator's Distribution System.
• All equipment manufacturer specification sheets.
• Documentation of site control indicated in Section 2.5.
2.2. Professional Licensed Engineer Signature
The one-line diagram submitted with the Interconnection Application will require a
signature from a professional engineer licensed in the State of Minnesota certifying the
DER was designed in conformance to the Minnesota Technical Requirements for the
following conditions:
• Certified4 equipment is greater than 250 kW.
• Non-certified equipment is greater than 20 kW.
2.3. Processing Fee
The processing fee will differ for a Fast Track Interconnection Application depending on
the type of equipment utilized as seen in Table 2.1.
4 Additional information regarding certified equipment is found in Section 14 and Section 15 of the Process
Overview document.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Table 2.1. Interconnection Application Process Fee
Equipment Type Process Fee
Certified System $100+$1/kW
Non-Certified System $100+$2/kW
2.4. Battery Storage
An inverter-based DER system may include battery storage. DER systems that include
battery storage should complete the Energy Storage Application along with the
Interconnection Application.
2.5. Site Control
Documentation of site control must be submitted with the Interconnection Application.
Site control may be demonstrated by any of the following:
• Ownership of, a leasehold interest in, or a right to develop a site for the purpose of
constructing the DER system.
• An option to purchase or acquire a leasehold site for constructing the DER system.
• An exclusivity or other business relationship between the Interconnection
Customer and the entity having the right to sell, lease, or grant the
Interconnection Customer the right to possess or occupy a site for constructing the
DER system.
3 Application Review
3.1. Timelines
The Interconnection Application shall be date- and time-stamped upon initial, and if
necessary, resubmission receipt. The Interconnection Customer shall be notified of
receipt by the Area EPS Operator within ten (10) Business Days of receipt of the
Interconnection Application.
The Area EPS Operator shall notify the Interconnection Customer if the Interconnection
Application is deemed incomplete within ten (10) Business Days and provide a written
list detailing all information that must be provided to complete the Interconnection
Application.The Interconnection Customer has ten (10) Business Days to provide the
missing information unless additional time is requested with valid reasons. Failure to
submit the requested information within the stated timeline will result in the
Interconnection Application being deemed withdrawn.The Area EPS Operator has an
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
additional five (5) Business Days to review the additionally provided information for
completeness.
An Interconnection Application will be deemed complete upon submission to the Area
EPS Operator provided all documents, fees and information required with the
Interconnection Application adhering to Minnesota Technical Requirements is
included.The time- and date- stamp of the completed Interconnection Application shall
be accepted as the qualifying date for the purpose of establishing a queue position as
described in Section 4.7 in the Overview Process document.
The Area EPS Operator has a total of twenty-five (25) Business Days to complete the
Interconnection Application review and submit notice back to the Interconnection
Customer stating the proposed DER system may proceed with the interconnection
process or a supplemental review offer is to be made or the proposed DER system has
been moved into a different process track. The period of time when waiting for the
Interconnection Customer to provide missing information is not included in the Area
EPS Operator's twenty-five (25) Business Days review timeline.
3.2. Initial Review Screens
The Area EPS Operator shall determine if the DER can be interconnected safely and
reliably without the construction of facilities by the Area EPS Operator by using a set of
Initial Review Screens. The Initial Review screens include the following engineering
screens:
• The proposed DER's Point of Common Coupling must be on a portion of the
Area EPS Operator's Distribution System.
• For interconnection of a proposed DER to a radial distribution circuit, the
aggregated generation, including the proposed DER, on the circuit shall not
exceed 15% of the line section annual peak load as most recently measured or
100%of the substation aggregated minimum load. A line section is that portion
of an Area EPS Operator's electric system connected to a customer bounded by
automatic sectionalizing devices or the end of the distribution line.The Area
EPS Operator may consider 100% of applicable loading (i.e. daytime minimum
load for solar), if available, instead of 15% of line section peak load.
• For interconnection of a proposed DER to the load side of network protectors,
the proposed DER must utilize an inverter-based equipment package and,
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
together with the aggregated other inverter-based DERs, shall not exceed the
smaller of 5%of a network's maximum load or 50 kW.5
• The proposed DER, in aggregation with other DERs on the distribution circuit,
shall not contribute more than 10%to the distribution circuit's maximum fault
current at the point on the high voltage (primary) level nearest the proposed
Point of Common Coupling.
• The proposed DER, in aggregate with other Distributed Energy Resources on the
distribution circuit, shall not cause any distribution protective devices and
equipment (including, but not limited to, substation breakers, fuse cutouts, and
line reclosers), or Interconnection Customer equipment on the system to
exceed 87.5% of the short circuit interrupting capability; nor shall the
interconnection be proposed for a circuit that already exceeds 87.5%of the
short circuit interrupting capability.
• Using the table below, determine the type of interconnection to a primary
distribution line.This screen includes a review of the type of electrical service
provided to the Interconnecting Customer, including line configuration and the
transformer connection to limit the potential for creating over-voltages on the
Area EPS Operator's electric power system due to a loss of ground during the
operating time of any anti-islanding function.
Table 3.1. Type of Primary Distribution Line Interconnections
Primary Distribution Type of Interconnection to Results
Line Type Primary Distribution Line
Three-Phase, three wire Three-phase or single-phase, Pass Screen
phase-to-phase
Three-phase, four wire Effectively-grounded three-phase Pass Screen
or single-phase, line-to-neutral
• If the proposed DER is to be interconnected on single-phase shared secondary,
the aggregate generation capacity on the shared secondary, including the
proposed DER, shall not exceed 20 kW or 65%of the transformer nameplate
rating.
• If the proposed DER is single-phase and is to be interconnected on a center tap
neutral of a 240-volt service, its addition shall not create an imbalance between
s Network protectors are protective devices used on secondary networks(spot and grid networks)to automatically
disconnect associated transformers when reverse power flow occurs. Secondary networks are most often used in
densely populated downtown areas.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
the two sides of the 240-volt service of more than 20%of the nameplate rating
of the service transformer.
The technical screens listed shall not preclude the Area EPS Operator from using tools
that perform screening functions using different methodologies provided the analysis is
targeted to maintain the voltage, thermal and protection objectives as the listed
screen.
3.3. Notification of Approval of Application
Provided the Interconnection Application passes the initial screens, or if the proposed
interconnection fails the screens but the Area EPS Operator determines that the DER
may nevertheless be interconnected consistent with safety, reliability and power
quality standards, the Area EPS Operator shall provide notice to the Interconnection
Customer that their Interconnection Application has been approved. The Area EPS
Operator shall provide the Interconnection Customer with an Interconnection
Agreement as outlined in Section 5.
3.4. Failure of Review Screens
If the proposed interconnection fails the screens, and the Area EPS Operator does not
or cannot determine from the Initial Review that the DER may nevertheless be
interconnected consistent with safety, reliability, and power quality standards, unless
the Interconnection Customer is willing to consider minor modifications or further
study, the Area EPS Operator shall provide the Interconnection Customer the
opportunity to attend a customer options meeting.
The Area EPS Operator shall notify the Interconnection Customer of the determination
and provide copies of all directly pertinent data and analyses underlying its conclusion,
subject to confidentiality provisions in Section 12.1 of the Overview Process document.
3.5. Customer Options Meeting
Within ten (10) Business Days of the Area EPS Operator's notification to the
Interconnection Customer of the proposed interconnection's failure of the engineering
screens, the Area EPS Operator and the Interconnection Customer shall schedule a
customer options meeting to review possible facility modification, screen analysis and
related results to determine what further steps are needed to permit the DER to be
interconnected safely and reliably to the Distribution System. At the customer options
meeting the Area EPS Operator shall:
• Offer to perform a supplemental review in accordance with Section 4 and
provide a non-binding good faith estimate of the cost of such review; or
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
• Obtain the Interconnection Customer's agreement to continue evaluating the
Interconnection Application under the Study Process track.
4 Supplemental Review
4.1. Acceptance of Supplemental Review
To accept the offer of a supplemental review, the Interconnection Customer shall agree
in writing and submit a deposit for the estimated costs of the supplemental review in
the amount of the Area EPS Operator's good faith estimate of the costs of such review
within fifteen (15) Business Days once the supplemental review offer is made by the
Area EPS Operator. If the written agreement and deposit have not been received by the
Area EPS Operator within that timeframe, the Interconnection Application can only
continue being evaluated under the Study Process or it can be withdrawn by the
Interconnection Customer.
The Interconnection Customer may specify within the written agreement the order in
which the Area EPS Operator will complete the supplemental review screens listed in
Section 4.4.
4.2. Supplemental Review Costs
The Interconnection Customer shall be responsible for the Area EPS Operator's actual
costs for conducting the supplemental review. The Interconnection Customer shall pay
any review costs that exceed the deposit within twenty (20) Business Days of receipt of
the invoice or resolution of any dispute. If the deposit exceeds the invoiced costs, the
Area EPS Operator will return such excess within twenty (20) Business Days of the
invoice without interest.
4.3. Supplemental Review Timelines
Within thirty (30) Business Days following the receipt of the deposit for a supplemental
review, the Area EPS Operator shall:
• Perform the supplemental review using the screens in Section 4.4.
• Notify the Interconnection Customer of the results in writing.
• Include copies of the Area EPS Operator's analysis under the screens with the
written notification.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Unless the Interconnection Customer provides instruction for how to respond to a
failure of any of the supplemental review screens in the written acceptance of
supplemental review, the Area EPS Operator shall notify the Interconnection Customer
within two (2) Business Days if a supplemental review screen is failed or if the Area EPS
Operator is unable to perform the supplemental review screen. The Area EPS Operator
shall then obtain the Interconnection Customer's permission to either:
• Continue evaluating the proposed interconnection using the supplemental
review screens in Section 4.4.
• Terminate the supplemental review and continue evaluating the
Interconnection Application in the Study Process track.
• Terminate the supplemental review upon withdrawal of the Interconnection
Application by the Interconnection Customer.
The Interconnection Customer shall respond with its choice within five (5) Business
Days of notification from the Area EPS Operator.
4.4. Supplemental Review Screens
The three supplemental review screens are the Minimum Load screen, the Voltage and
Power Quality screen and the Safety and Reliability screen.
4.4.1. Minimum Load Screen
The aggregate DER capacity on the line section is less than 100%of the
minimum load for all line sections bounded by automatic sectionalizing
devices upstream of the proposed DER. If minimum load data is not available,
or cannot be calculated, estimated or determined, the Area EPS Operator
shall include the reason(s)that it is unable to calculate, estimate or determine
minimum load in its supplemental review results notification under Section
4.3. The line section minimum load data shall include onsite load but not
station service load served by the proposed DER in this screen.
The type of generation used by the proposed DER will be considered when
calculating, estimating, or determining circuit or line section minimum load
relevant for the application of this screen. Solar photovoltaic (PV) generation
systems with no battery storage use daytime minimum load (i.e., 10 a.m. to 4
p.m. for fixed panel systems and 8 a.m. to 6 p.m. for PV systems utilizing
tracking systems), while all other generation uses absolute minimum load.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
When this screen is being applied to a DER that serves some station service
load, only the net injection into the Area EPS Operator's electric system will
be considered as part of the aggregate generation.
The Area EPS Operator will not consider as part of the aggregate generation
for purposes of this screen DER capacity known to be already reflected in the
minimum load data.
4.4.2. Voltage and Power Quality Screen
In aggregate with existing generation on the line section the following
conditions shall be met for the screen to be passed:
• The voltage regulation on the line section can be maintained in
compliance with relevant requirements under all system conditions.
• The voltage fluctuation is within acceptable limits as defined by Institute
of Electrical and Electronics Engineers (IEEE) Standard 1453, or utility
practice similar to IEEE Standard 1453.
• The harmonic levels meet IEEE Standard 519 limits.
4.4.3. Safety and Reliability Screen
The location of the proposed DER and the aggregate generation capacity on
the line section do not create impacts to safety or reliability that cannot be
adequately addressed without application of the Study Process.The Area EPS
Operator shall give due consideration to the following and other factors in
determining potential impacts to safety and reliability in applying this screen.
• Whether the line section has significant minimum loading levels
dominated by a small number of customers (e.g., several large commercial
customers).
• Whether the loading along the line section is uniform or even.
• Whether the proposed DER is located in close proximity to the substation
(i.e., less than 2.5 electrical circuit miles), and whether the line section
from the substation to the Point of Common Coupling is a main line rated
for normal and emergency ampacity.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
• Whether the proposed DER incorporates a time delay function to prevent
reconnection of the generator to the system until system voltage and
frequency are within normal limits for a prescribed time.
• Whether operational flexibility is reduced by the proposed DER, such that
transfer of the line section(s) of the DER to a neighboring distribution
circuit/substation may trigger overloads or voltage issues.
• Whether the proposed DER employs equipment or systems certified by a
recognized standards organization to address technical issues such as, but
not limited to, islanding, reverse power flow, or voltage quality.
4.5. Identification of Construction of Facilities
If the proposed interconnection requires the construction of any distribution or
transmission facilities, the Area EPS Operator shall notify the Interconnection Customer
of the requirement when it provides the supplemental review results. The Area EPS
Operator may include a non-binding good faith estimate to construct the facilities
included with the supplemental review results. In lieu of providing a non-binding good
faith estimate to construct the necessary facilities, the Area EPS Operator may require
the proposed interconnection to move to the Study Process for a facility study instead.
Upon being presented with either the non-binding good faith estimate or the
requirement for a facility study, the Interconnection Customer has five (5) Business
Days to inform the Area EPS Operator to proceed with the proposed interconnection or
withdraw the Interconnection Application.
4.6. Supplemental Review Results
If the proposed interconnection passes the supplemental review screens in Section 4.4
and does not require construction of distribution or transmission facilities by the Area
EPS on its own system, the Area EPS Operator shall provide an executable
Interconnection Agreement within five (5) Business Days after the supplemental review
screens are completed. Information regarding the Interconnection Agreement is
detailed in Section 5.
If the proposed interconnection passes the supplemental review screens in Section 4.4
and the Interconnection Customer agrees to the non-binding good faith estimate of
construction of any distribution or transmission facilities by the Area EPS Operator, the
Area EPS Operator shall provide an executable Interconnection Agreement within
twenty (20) Business Days. Included with the Interconnection Agreement shall be non-
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
binding good faith estimate of construction costs and a construction schedule for the
facilities. Information regarding the Interconnection Agreement is detailed in Section 5.
If the proposed interconnection does not pass the supplemental review screens in
Section 4.4 the Area EPS Operator shall provide the Interconnection Customer with the
option of commencing the Study Process. The Interconnection Customer shall notify
the Area EPS Operator within fifteen (15) Business Days if they wish to proceed with
the Study Process to retain their queue position or the Interconnection Application will
be deemed withdrawn.
5 Interconnection Agreement
5.1. Uniform Contract
For a proposed interconnection that meets the conditions of being classified as a
qualifying facility less than 40 kW, the Area EPS Operator shall provide the
Interconnection Customer with an executable copy of the Area EPS Operator's Uniform
Contract for Cogeneration and Small Power Production Facilities (Uniform Contract).
5.2. Municipal Minnesota Interconnection Agreement
For proposed interconnections that do not meet the conditions of being classified as a
qualifying facility less than 40 kW or if requested by the Interconnection Customer in
lieu of signing the Uniform Contract, the Area EPS Operator shall provide an executable
copy of the Municipal Minnesota Interconnection Agreement (MMIA).
5.3. Completion of Agreement
The Interconnection Customer must return a signed Interconnection Agreement at
least thirty (30) Business Days prior to the requested in-service date of the proposed
DER.The Area EPS Operator shall sign and return a copy of the fully executed
Interconnection Agreement back to the Interconnection Customer.
The Interconnection Customer may update the requested in-service date submitted on
the Interconnection Application to a date thirty (30) Business Days or later from the
date on which the Interconnection Customer submits a signed Interconnection
Agreement and payment if required unless the Area EPS Operator agrees to an earlier
date.
Upon receipt of the signed Interconnection Agreement, the Area EPS Operator may
schedule appropriate metering replacements and construction of facilities, if necessary.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
6 Insurance
6.1. Insurance Requirements
At minimum, the Interconnection Customer shall maintain, for the duration the DER
system is interconnected to the Area EPS Operator's Distribution System, general
liability insurance from a qualified insurance agency with a B+or better rating by"Best"
with a combined single limit of not less than those described in Table 6.1. Such general
liability insurance shall include coverage against claims for damages resulting from (i)
bodily injury, including wrongful death; and (ii) property damage arising out of the
Interconnection Customer's ownership and/or operation of the DER under this
agreement. Evidence of the insurance shall state that coverage provided is primary and
is not excess to or contributing with any insurance or self-insurance by the Area EPS
Operator.
Table 6.1. Liability Insurance Requirements
DER System Size Liability Insurance Requirement
< 40 kW AC $300,000
>_40kWAC and < 250kWAC $1,000,000
>_ 250 kW AC and < 5 MW AC $2,000,000
>_ 5 MW AC $3,000,000
For all proposed DER systems, except those that are qualifying systems less than 40 kW
AC, the general liability insurance shall, by endorsement to the policy or polices:
• Include the Area EPS Operator as additionally insured.
• Contain severability of interest clause or cross-liability clause.
• Provide that the Area EPS Operator shall not by reason incur liability to the
insurance carrier for the payment of premiums for such insurance if the Area
EPS Operator is included as an additionally insured.
6.2. Self-Insurance
The Interconnection Customer may choose to be self-insured provided there is an
established record of self-insurance. The Interconnection Customer shall supply the
Area EPS Operator at least 20 days prior to the date of initial operation, evidence of an
acceptable plan to self-insure to a level of coverage equivalent to that required in
Section 6.1. Failure of the Interconnection Customer or the Area EPS Operator to
enforce the minimum levels of insurance does not relieve the Interconnection
Customer from maintaining such levels of insurance or relieve the Interconnection
Customer of any liability.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
6.3. Proof of Insurance
The Interconnection Customer shall furnish the required insurance certificates and
endorsements to the Area EPS Operator prior to the initial operation of the DER. A copy
of the Declaration page of the Homeowner's insurance policy is a common example of
an insurance certificate.Thereafter, the Area EPS Operator shall have the right to
periodically inspect or obtain a copy of the original policy or polices of insurance.
Additionally, the Area EPS Operator may request to be additionally listed as an
interested third part on the insurance certificates and endorsements for qualifying
facilities less than 40 kW AC to meet the right to periodically obtain a copy of the policy
or policies of insurance.
7 Timeline Extensions
7.1. Reasonable Efforts
The Area EPS Operator shall make Reasonable Efforts to meet all time frames provided
in these procedures. If the Area EPS Operator cannot meet a deadline provided herein,
it must notify the Interconnection Customer in writing within three (3) Business Days
after the deadline to explain the reason for the failure to meet the deadline and
provide an estimated time by which it will complete the applicable interconnection
procedure in the process.
7.2. Extensions
For applicable time frames described in these procedures, the Interconnection
Customer may request in writing one extension equivalent to half of the time originally
allotted (e.g., ten (10) Business Days for a twenty (20) Business Days original time
frame) which the Area EPS Operator may not unreasonably refuse. No further
extensions for the applicable time frame shall be granted absent a Force Majeure Event
or other similarly extraordinary circumstance.
8 Modifications to Application
8.1. Procedures
At any time after the Interconnection Application is deemed complete, the
Interconnection Customer or the Area EPS Operator may identify modifications to the
proposed DER system that may improve costs and benefits (including reliability) of the
proposed DER system and the ability for the Area EPS Operator to accommodate the
proposed DER system. The Interconnection Customer shall submit to the Area EPS
Operator in writing all proposed modifications to any information provided in the
Interconnection Application. The Area EPS Operator cannot unilaterally modify the
Interconnection Application.
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8.2. Timelines
Within ten (10) Business Days of receipt of the proposed modification, the Area EPS
Operator shall evaluate whether the proposed modification to the Interconnection
Application constitutes a Material Modification. The definition in the Section 13
Glossary of the Process Overview document includes examples of what does and does
not constitute a Material Modification.
The Area EPS Operator shall notifythe Interconnection Customer in writing of the final
p
determination of the proposed modification. For proposed modifications that are
determined to be a Material Modification the Interconnection Customer may choose to
either: 1) withdraw the proposed modification; or 2) proceed with a new
Interconnection Application. The Interconnection Customer shall provide its
determination in writing to the Area EPS Operator within ten (10) Business Days after
being provided the Material Modification determination. If the Interconnection
Customer does not provide its determination within the timeline, the Interconnection
Application shall be considered withdrawn.
If the proposed modification is not determined to be a Material Modification, then the
Area EPS Operator shall notify the Interconnection Customer in writing that the
modification has been accepted and the Interconnection Customer shall retain its
eligibility for interconnection, including its place in the queue.
9 Interconnection
9.1. Interconnection Milestones
For DER systems that are not a qualifying facility less than 40 kW AC, the
Interconnection Customer and the Area EPS Operator shall agree on milestones for
which each Party is responsible and list them in Attachment IV of the MMIA. To the
greatest extent possible, the Parties will identify all design, procurement, installation
and construction requirements associated with the project, and clear associated
timelines, at the beginning of the design, procurement, installation and construction
phase, or as early within the process as possible.
A Party's obligation under this provision may be extended by agreement. If a Party
anticipates that it will be unable to meet a milestone for any reason other than a Force
Majeure Event, it shall immediately notify the other Party of the reason(s) for not
meeting the milestone, propose the earliest reasonable alternative date in which this
and future milestones will be met, and request appropriate amendments to the MMIA
and its attachments.The Party affected by the failure to meet a milestone shall not
unreasonably withhold agreement to such an amendment unless:
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• The Party will suffer significant uncompensated economic or operational harm
from the delay, or
• Attainment of the same milestone has previously been delayed, or
• The Party has reason to believe the delay in meeting the milestone is
intentional or unwarranted notwithstanding the circumstance explained by the
Party proposing the amendment.
If the Party affected by the failure to meet a milestone disputes the proposed
extension,the affected Party may pursue dispute resolution as described in the
Overview Process document.
9.2. Metering
Any metering requirements necessitated by the use of the DER system shall be installed
at the Interconnection Customer's expense. The metering requirement costs will be
included in the final invoice of interconnection costs to the Interconnection Customer.
The Interconnection Customer is also responsible for metering replacement costs not
covered in the Interconnection Customer's general customer charge. The Area EPS
Operator maycharge Interconnection Customers an ongoing metering-related charge
p g g g g g
for an estimate of ongoing metering-related costs specifically demonstrated.
9.3. Construction
The Interconnection Customer may proceed to construct (including operational testing
not to exceed two hours) the DER system when the Area EPS Operator has approved
the Interconnection Application. Upon receipt of a signed Uniform Contract or
Interconnection Agreement the Area EPS Operator shall schedule and execute
appropriate construction of facilities.
9.4. Inspection, Testing and Commissioning
Upon completing construction of the DER system, the Interconnection Customer will
cause the DER system to be inspected or otherwise certified by the appropriate local
electrical wiring inspector with jurisdiction. The Interconnection Customer shall then
arrange for the inspection and testing of the DER system and the Customer's
Interconnection Facilities prior to interconnection pursuant to Minnesota
Interconnection Technical Requirements. Commissioning tests of the Interconnection
Customer's installed equipment shall be performed pursuant to applicable codes and
standards of Minnesota's Technical Requirements and Section 15 in the Overview
Process.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
The Interconnection Customer shall notify the Area EPS Operator of testing and
inspection no fewer than five (5) Business Days in advance, or as may be agreed to by
the Parties. The Interconnection Customer shall provide to the Area EPS Operator a
testing procedure that will be followed on the day of testing and inspection no fewer
than ten (10) Business Days prior to the testing and inspection date. The testing
procedure should include tests and/or inspections to confirm the DER system will meet
the technical requirements of interconnection.The Area EPS Operator shall review the
testing procedure for completeness and shall notify the Interconnection Customer if
the testing procedure fails to address components of the technical requirements for
interconnection.
The Area EPS Operator shall send qualified personnel to the DER site to inspect the
interconnection and witness the testing. Testing and inspection shall occur on a Business
Day at a mutually agreed upon date and time.The Area EPS Operator may waive the
right to witness the testing.
9.5. Interconnection Costs
9.4.1 Estimation of Interconnection Costs
The Interconnection Customer shall pay for the actual cost of the
Interconnection Facilities and Distribution Upgrades along with the Area EPS
Operator's cost to commission the proposed DER system. An estimate of the
interconnection costs shall be stated in the Uniform Contract or in the MMIA
in Attachment II as a detailed itemization of such costs. If Network Upgrades
are required, the actual cost of the Network Upgrades, including overheads,
shall be borne by the Interconnection Customer pursuant to the Transmission
Provider and associated agreements.
9.4.2 Progressive Payment of Interconnection Costs
The Area EPS Operator shall bill the Interconnection Customer for the design,
engineering, construction and procurement costs of the Interconnection
Facilities and Upgrades described in the MMIA Attachment II on a monthly
basis or other basis agreed upon by both Parties in the MMIA, or Uniform
Contract. The Interconnection Customer shall pay each bill within twenty-one
(21) Business Days or as agreed to in the MMIA, or Uniform Contract.
9.4.3 Final Accounting of Interconnection Facilities and Upgrade Costs
If distribution or transmission facilities required upgrades to accommodate
the proposed DER system, the Area EPS Operator shall render the final
interconnection cost invoice to the Interconnection Customer within eighty
(80) Business Days (approximately four calendar months) of completing the
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
construction and installation of the Area EPS Operator's Interconnection
Facility and Upgrades. The Area EPS Operator shall provide the
Interconnection Customer with a final accounting report identifying the
difference between the actual Interconnection Customer's cost responsibility
and the Interconnection Customer's previous aggregate payments to the Area
EPS Operator for the specific DER system interconnection. Upon the final
accounting submitted to the Interconnection Customer, the balance between
the actual cost and previously aggregated payments shall be paid to the Area
EPS Operator within twenty (20) Business Days. If the balance between the
actual cost and previously aggregated payments is a credit, the Area EPS
Operator shall refund the Interconnection Customer within twenty(20)
Business Days.
9.4.4 Final Interconnection Costs without Facilities and Upgrades Needed
Within thirty (30) Business Days the final invoice for the interconnection costs
shall be rendered to the Interconnection Customer once the proposed DER
system has been commissioned by the Area EPS Operator, or upon the
commissioning being waived by the Area EPS Operator.The Interconnection
Customer shall make payment to the Area EPS Operator within twenty-one
(21) Business Days of receipt, or as otherwise stated in the Uniform Contract
or MMIA.
9.6. Security of Payment
At the option of the Area EPS Operator, either the "Traditional Security" or the
"Modified Security" method shall be used for assurance of payment of interconnection
cost.
Under the Traditional Security method, the Interconnection Customer shall provide
reasonable, adequate assurances of credit, including a letter of credit or personal
guaranty of payment and performance from a creditworthy entity acceptable under the
Area EPS Operator credit policy. The letter of credit shall also include procedures for
the unpaid balance of the estimated amount shown in the Interconnection Agreement
for the totality of all anticipated work or expense incurred by the Area EPS Operator
associated with the Interconnection Application.The payment for these estimated
costs shall be as follows:
• 1/3 of estimated costs shall be due no later than when the Interconnection
Customer signs the Interconnection Agreement.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
• An additional 1/3 of estimated costs shall be due prior to initial energization of
the DER with the Area EPS Operator.
• Remainder of actual costs, incurred by Area EPS Operator, shall be due within
thirty (30) Business Days from the date the bill is mailed by the Area EPS
Operator after project completion.
Under the Modified Security method, at least twenty (20) Business Days prior to the
commencement of the design, procurement, installation, or construction of a discrete
portion of the Area EPS Operator's Interconnection Facilities and Upgrades, the
Interconnection Customer shall provide the Area EPS Operator, at the Interconnection
Customer's option, a guaranty, letter of credit or other form of security that is
reasonably acceptable to the Area EPS Operator and is consistent with the Minnesota
Uniform Commercial Code. Such security for payment shall be in an amount sufficient
to cover the costs for constructing, designing, procuring, and installing the applicable
portion of the Area EPS Operator's Interconnection Facilities and Upgrades and shall be
reduced on a dollar-for-dollar basis for payments made to the Area EPS Operator under
the Interconnection Agreement during its term.
The guaranty must be made by an entity that meets the creditworthiness requirements
of the Area EPS Operator and contain terms and conditions that guarantee payment of
any amount that may be due from the Interconnection Customer, up to an agreed-to
maximum amount.
The letter of credit must be issued by a financial institution or insurer reasonably
acceptable to the Area EPS Operator and must specify a reasonable expiration date not
sooner than sixty(60) Business Days (three calendar months) after the due date of the
final accounting report and bill described in Section 9.5
9.7. Non-Warranty
Area EPS Operator does not give any warranty, expressed or implied, as to the
adequacy, safety, or other characteristics of any structures, equipment, wires,
appliances or devices owned, operated, installed or maintained by the Interconnection
Customer, including without limitation the DER and any structures, equipment, wires,
appliances or devices not owned, operated or maintained by the Area EPS Operator.
The Area EPS Operator does not guarantee uninterrupted power supply to the DER and
will operate the Distribution System with the same reliability standards for the entire
customer base.
9.8. Authorization for Parallel Operation
The Interconnection Customer shall not operate its DER system in parallel with the
Area EPS Operator's Distribution System without prior written authorization from the
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Area EPS Operator. The Area EPS Operator shall provide such authorization within
three (3) Business Days from when the Area EPS Operator receives notification that the
Interconnection Customer has complied with all applicable parallel operations
requirements and commissioning has been successfully completed. Such authorization
shall not be unreasonably withheld, conditioned or delayed.
9.9. Continual Compliance
The Interconnection Customer shall be fully responsible to operate, maintain, and
repair the DER as required to ensure that it complies at all times with the
interconnection standards to which it has been certified.The Interconnection
Customer shall also operate its DER system in compliance with the Area EPS Operator's
technical requirements referred to in the executed Interconnection Agreement.The
Area EPS Operator may periodically inspect, at its own expense, the operation of the
DER system as it relates to power quality, thermal limits and reliability. Failure by the
Interconnection Customer to remain in compliance with the technical requirements will
result in the disconnection of the DER system from the Area EPS Operator's
Distribution System.
9.10. Disconnection of DER
The Area EPS Operator has the right to disconnect the DER in the event of the
following:
• Does not continue to follow and maintain IEEE 1547 settings approved by the Area
EPS Operator as indicated by the adopted technical requirements.
• Does not meet all the requirements of the Fast Track Process.
• Refuses to sign either the MMIA or the Area EPS Operator's Uniform Contract.
The Area EPS Operator may temporarily disconnect the DER upon the following
conditions:
• For scheduled outages upon reasonable notice.
• For unscheduled outages or emergency conditions.
• If the DER does not operate in the manner consistent with the Fast Track Process.
The Area EPS Operator shall inform the Interconnection Customer in advance of any
scheduled disconnections, or as reasonable, after an unscheduled disconnection.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
•
ABSTRACT
Information in addition to the "Process
Overview" for interconnecting to the utility
distribution system Distributed Energy
Southern Minnesota Municipal Power Agency's Resources larger than 4 megawatts in size or
5 MW Lemond Solar Station in need of additional studies.
Owatonna, MN
INTERCONNECTION
PROCESS
Study Process
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Contents
1 Applicability 1
1.1. Applicability 1
1.2. Codes, Standards and Certification Requirements 1
2 Application Submission 1
2.1. Initial Interconnection Application for the Study Process 1
2.2. Professional Licensed Engineer Signature 2
2.3. Battery Storage 2
2.4. Site Control 2
2.5. Interconnection Applications from Other Processes 2
3 Initial Steps 3
3.1. Completeness Review and Queue Position 3
3.2. Scoping Meeting 3
4 System Impact Study 4
4.1. Electric System Impacts 4
4.2. System Impact Study Agreement 4
4.3. System Impact Study Costs 4
4.4. System Impact Study Timelines 4
5 Transmission System Impact Study 5
5.1. Transmission System Impacts 5
5.2. Transmission System Impact Study Timelines 6
5.3. Regional Transmission Operator Jurisdiction 6
6 Facilities Study 6
6.1. Construction of Facilities 6
6.2. Facilities Study Agreement 6
6.3. Facilities Study Timeline 7
6.4. Identification of Construction of Facilities 7
6.5. Facilities Study Report Timeline 8
7 Interconnection Agreement 9
7.1. Uniform Contract 9
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
7.2. Municipal Minnesota Interconnection Agreement 9
7.3. Completion of Agreement 9
8 Insurance 10
8.1. Insurance Requirements 10
8.2. Self-Insurance 10
8.3. Proof of Insurance 11
9 Timeline Extensions 11
9.1. Reasonable Efforts 11
9.2. Extensions 11
10 Modifications to Application 11
10.1. Procedures 11
10.2. Timelines 12
11 Interconnection 12
11.1. Interconnection Milestones 12
11.2. Metering 13
11.3. Inspection, Testing and Commissioning 13
11.4. Interconnection Costs 14
11.5. Security of Payment 15
11.6. Non-Warranty 16
11.7. Authorization for Parallel Operation 16
11.8. Continual Compliance 17
11.9. Disconnection of DER 17
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
1 Applicability
1.1. Applicability
The Study Process is applicable to an Interconnection Customer proposing to
interconnect a Distributed Energy Resource (DER) with the Area Electrical Power System
(Area EPS) Operator's Distribution System, if the DER capacity is larger than 4 MW or is
identified through the engineering screening process to need additional studies.
The majority of proposed DER interconnections will initially apply for interconnection
under the Simplified or Fast Track Processes. Initial and supplemental screening results
are to be considered throughout the Study Process.
1.2. Codes, Standards and Certification Requirements
The Interconnection Customer's proposed DER must meet the codes, standards and
certification requirements listed in Section 13, 14 and Section 15 of the Process
Overview document.The Area EPS Operator may allow DER systems that do not meet
codes, standards and certification only if the DER system design is reviewed, tested and
determined to be safe to operate in parallel with the Distribution System.
2 Application Submission
2.1. Initial Interconnection Application for the Study Process
For proposed DER interconnections that are not initially applied for under the Fast Track
Process, the Interconnection Customer shall complete the Standard Interconnection
Application and submit it to the Area EPS Operator to initiate the Interconnection
Process. A completed Interconnection Application will include the following:
• A completed Interconnection Application signed by the Interconnection Customer.
• A process fee not to exceed $1,000, plus $2.00 per kW, toward the deposit of the
study(s) indicated in Section 4.
• A site layout drawing of the proposed DER system.
• A one-line diagram of the proposed DER system showing the Point of Common
Coupling to the Area EPS Operator's Distribution System.
• All equipment manufacturer specification sheets.
• Documentation of site control as indicated in Section 2.4.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
2.2. Professional Licensed Engineer Signature
The one-line diagram submitted with the Interconnection Application will require a
signature from a professional engineer licensed in the State of Minnesota certifying the
DER was designed in conformance to the Minnesota Technical Requirements for the
following conditions:
• Certified1 equipment is greater than 250 kW.
• Non-certified equipment is greater than 20 kW.
2.3. Battery Storage
An inverter-based DER system may include battery storage. DER systems that include
battery storage should complete the Energy Storage Application along with the
Interconnection Application.
2.4. Site Control
Documentation of site control must be submitted with the Interconnection Application.
Site control may be demonstrated by any of the following:
• Ownership of, a leasehold interest in, or a right to develop a site for the purpose of
constructing the DER system;
• An option to purchase or lease a site for constructing the DER system;
• An exclusivity or other business relationship between the Interconnection Customer
and the entity having the right to sell, lease, or grant the Interconnection Customer
the right to possess or occupy a site for constructing the DER system.
2.5. Interconnection Applications from Other Processes
Some Interconnection Applications submitted under the Fast Track Process may be
moved into the Study Process due to issues with the DER interconnection identified by
engineering screens. An Area EPS Operator cannot request a new Interconnection
Application submission if the Interconnection Application has already been submitted
through the Fast Track Process. The Interconnection Customer who had already paid a
processing fee for the Fast Track Process is still responsible to make a deposit toward
the applicable studies address in Section 4, 5 and 6, but does not need to submit an
additional processing fee.
1 Additional information regarding certified equipment is found in Sections 14 and 15 of the Process Overview
document.
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3 Initial Steps
3.1. Completeness Review and Queue Position
The Interconnection Application originally submitted under the Study Process shall be
date- and time-stamped upon initial receipt, and if necessary, resubmission receipt.The
Interconnection Customer shall be notified of receipt by the Area EPS Operator within
ten (10) Business Days after receipt.
The Area EPS Operator shall notify the Interconnection Customer, within ten (10)
Business Days, if the Interconnection Application is deemed incomplete, and provide a
written list detailing all information that must be provided to complete the
Interconnection Application.The Interconnection Customer has ten (10) Business Days,
to provide the missing information, unless additional time is requested with a valid
reason. Failure to submit the requested information, within the stated timeline, will
result in the Interconnection Application being deemed withdrawn. The Area EPS
Operator has an additional five (5) Business Days to review the additionally provided
information for completeness.
An Interconnection Application will be deemed complete upon submission to the Area
EPS Operator, provided all documents, fees and information required with the
Interconnection Application, adhering to Minnesota Technical Requirements, is
included.The date- and time-stamp of the completed Interconnection Application shall
be accepted as the qualifying date for the purpose of establishing a queue position, as
described in Section 4.7 of the Overview Process document.
Interconnection Applications already screened in the Simplified Process or Fast Track
Process shall retain their original queue position in the Study Process provided all
applicable timelines were met.
3.2. Scoping Meeting
A scoping meeting shall be held within ten (10) Business Days after the Interconnection
Application submitted under the Study Process is deemed complete. For
Interconnection Applications that were submitted under or put through the Fast Track
Process, the scoping meeting will occur within ten (10) Business Days after the
Interconnection Customer has elected to continue with the Study Process.The scoping
meeting timeline may be extended upon mutual agreement of both Parties.The scoping
meeting may also be omitted by mutual agreement.
The purpose of the scoping meeting is to discuss the Interconnection Application and
review existing study results relevant to the Interconnection Application.The Parties
shall further discuss whether the Area EPS Operator should perform a System Impact
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Study or Studies, or proceed directly to a Facilities Study or an Interconnection
Agreement. If the Area EPS Operator determines there is no potential for Transmission
System or Distribution System adverse system impacts, the Interconnection Application
shall proceed directly to a Facilities Study or an executable Interconnection Agreement,
as agreed to by the Parties.
4 System Impact Study
4.1. Electric System Impacts
A System Impact Study shall identify and detail the electric system impacts that would
result if the proposed DER(s) were interconnected without project modifications or
electric system modifications. The System Impact Study is also to study the potential
impacts, including but not limited to, those identified in the scoping meeting. A System
Impact Study shall evaluate the impacts of the proposed interconnection on the
reliability of the electric system.
4.2. System Impact Study Agreement
If the Parties agree at the scoping meeting that a System Impact Study should be
performed, the Area EPS Operator shall provide the Interconnection Customer a System
Impact Study Agreement, not later than five (5) Business Days after the scoping
meeting. If the scoping meeting was omitted by mutual agreement, the Area EPS
Operator shall provide the Interconnection Customer a System Impact Study Agreement
within ten (10) Business Days after the Interconnection Customer waives the scoping
meeting.
The System Impact Study Agreement shall include an outline of the scope of the study
and a non-binding good faith estimate of the cost to perform the study. If applicable,
the System Impact Study Agreement shall list any additional and reasonable technical
data on the DER needed to perform the study. The scope and cost responsibilities are to
be described in the System Impact Study Agreement.
4.3. System Impact Study Costs
A deposit of the good faith estimated cost for each System Impact Study shall be
provided by the Interconnection Customer with the return of a signed System Impact
Study Agreement.
4.4. System Impact Study Timelines
Both the Area EPS Operator and the Interconnection Customer has timeline
responsibilities under the System Impact Study.
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4.4.1. Interconnection Customer Timelines
In order to remain in consideration for interconnection, an Interconnection
Customer who has requested a System Impact Study shall meet the following
conditions within twenty(20) Business Days of being provided a System Impact
Study Agreement:
• Return a signed System Impact Study Agreement.
• Provide to the Area EPS Operator any requested additional and reasonable
technical data on the DER needed to perform the System Impact Study.
• Pay the required study deposit.
Upon the Interconnection Customer's request,the Area EPS Operator shall grant
a time frame extension as described in Section 9.29.2, if additional technical data
is requested.
4.4.2 Area EPS Operator Timelines
A System Impact Study shall be completed within thirty (30) Business Days after
the System Impact Study Agreement has been signed by both Parties and
delivered with the deposit and requested technical information to the Area EPS
Operator. The results of the System Impact Study shall be delivered to the
Interconnection Customer within five (5) Business Days of completion of the
System Impact Study. Upon request, the Area EPS Operator shall provide the
Interconnection Customer supporting documentation developed in the
preparation of the System Impact Study, subjected to confidentiality
arrangements consistent with Section 12.1 of the Overview Process and terms of
the System Impact Study Agreement.
5 Transmission System Impact Study
5.1. Transmission System Impacts
In instances where the System Impact Study shows potential for Transmission System
adverse system impacts, the Area EPS Operator shall contact the appropriate
Transmission Provider within five (5) Business Days following the identification of such
impacts.The Area EPS Operator shall coordinate with the Area EPS Operator's
Transmission Provider to have the necessary studies to determine if the DER causes any
adverse transmission impacts.The appropriate Transmission Provider shall provide a
Transmission System Impact Study Agreement for the Interconnection Customer.
Included in the Transmission System Impact Study Agreement will be a non-binding,
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good faith estimate of cost for the study, along with a scope outline of the study and
any additional technical data required to complete the Transmission System Impact
Study.
5.2. Transmission System Impact Study Timelines
In order to remain in consideration for interconnection, an Interconnection Customer
must return the executed Transmission System Impact Study Agreement, along with the
study deposit, within fifteen (15) Business Days.The Transmission System Impact Study
shall be completed and the results provided to the Interconnection Customer in as
timely a manner as possible, after the Transmission System Impact Study Agreement is
signed by the Parties.The Area EPS Operator shall be responsible for coordination with
the Transmission Provider as needed. Affected Systems shall participate in the study and
provide all information necessary to prepare the study.
5.3. Regional Transmission Operator Jurisdiction
In certain circumstances the Transmission Provider may not be able to study a proposed
DER system if there is a possible affect to the bulk Transmission System. In these
situations, the Area EPS Operator will coordinate with the Transmission Provider to
inform the Interconnection Customer that the proposed DER system will need to follow
the Regional Transmission Operator's interconnection process. For most of Minnesota,
the Regional Transmission Operator is Midcontinent Independent System Operator
(MISO).
6 Facilities Study
6.1. Construction of Facilities
If construction of facilities is required, a Facility Study may be necessary to specify and
estimate the cost of the equipment, engineering, procurement and construction work. A
Facility Study is identified by an Initial Review, Supplemental Review or the Study
Process to provide interconnection and interoperability of the DER with the Area EPS
Operator's Distribution System as required by Minnesota Technical Requirements. At
the determination of the Area EPS Operator, Interconnection Applications reviewed in
the Simplified Process or the Fast Track Process that require construction of facilities
may forgo a Facilities Study.
6.2. Facilities Study Agreement
The Area EPS Operator shall provide the Interconnection Customer a Facilities Study
Agreement either:
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• in tandem with the results of the Interconnection Customer's System Impact Study,
or
• in tandem with a Transmission System Impact Study, or
• if no System Impact Study is required, within five (5) Business Days after the scoping
meeting, or
• within ten (10) Business Days after the Interconnection Application is deemed
complete and approved through the Simplified Process or Fast Track Process.
The Facilities Study Agreement shall be accompanied by an outline of the scope of the
study and a non-binding good faith estimate of the cost to perform the Facilities Study.
The scope of and cost responsibilities for the Facilities Study are to be described in the
Facilities Study Agreement. A deposit of the good faith estimated costs for the Facilities
Study shall be provided by the Interconnection Customer at the time it returns the
Facilities Study Agreement.
6.3. Facilities Study Timeline
In order to remain under consideration for interconnection, the Interconnection
Customer must return the executed Facilities Study Agreement and pay the required
study deposit within fifteen (15) Business Days.
6.4. Identification of Construction of Facilities
The Facilities Study shall specify and estimate the cost of the equipment, engineering,
procurement and construction work (including overheads), needed to implement the
conclusions of the System Impact Study(-ies). Design for any required Interconnection
Facilities and/or Upgrades shall be performed under the Facilities Study Agreement
unless the Facilities Study Agreement was deemed unnecessary by the Area EPS
Operator. However, in the event that the Interconnection Customer did not provide the
Area EPS Operator all required Conditional Use Permits at the time of entering into the
Facilities Study Agreement, any such Design and/or Upgrades by the Area EPS Operator
may be delayed until after the Interconnection Customer has provided to the Area EPS
Operator all required Conditional Use Permits or provides a final design. The
information in the Conditional Use Permits, or changes to the design, may result in
significant modifications to the planned design and/or Upgrades.The Interconnection
Customer may send to the Area EPS Operator a redacted version of the Conditional Use
Permit(s) to ensure confidentiality, but any and all information that the Area EPS
Operator would reasonably need to perform an accurate Facilities Study shall not be
redacted. If necessary to comply with these requirements, a confidential version of the
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Conditional Use Permit(s) may be provided to the Area EPS Operator, with the
confidential information being clearly marked and subjected to Confidentiality
provisions in the Overview Process document Section 12.1.
The Area EPS Operator may contract with consultants to perform activities required
under the Facilities Study Agreement.The Interconnection Customer and the Area EPS
Operator may agree to allow the Interconnection Customer to separately arrange for
the design of some of the Interconnection Facilities. In such cases, facilities design will
be reviewed and/or modified prior to acceptance by the Area EPS Operator, under the
provisions of the Facilities Study Agreement. The Area EPS Operator shall make
sufficient information available to the Interconnection Customer, in accordance with
confidentiality and critical infrastructure requirements, to permit the Interconnection
Customer to obtain an independent design and cost estimate for any necessary
facilities.
6.5. Facilities Study Report Timeline
In cases where Upgrades are required, the Facilities Study must be completed within
forty-five (45) Business Days of the receipt of the executed Facilities Study Agreement
and deposit. In cases where no Upgrades are necessary, and the required facilities are
limited to Interconnection Facilities, the Facilities Study must be completed within thirty
(30) Business Days of the receipt of the executed Facilities Study Agreement and
deposit.
Once the Facilities Study is completed, a draft Facilities Study Report shall be prepared
and transmitted to the Interconnection Customer. Upon request, the Area EPS Operator
shall provide the Interconnection Customer supporting documentation developed in the
preparation of the Interconnection Facilities Study, subject to confidentiality
arrangements consistent with these procedures and the Facilities Study Agreement.
Within ten (10) Business Days of providing a draft Facilities Study Report to the
Interconnection Customer, the Area EPS Operator and Interconnection Customer shall
meet to discuss the results of the Facilities Study.This meeting may be omitted by
mutual agreement. The Interconnection Customer may, within twenty (20) Business
Days after receipt of the draft report, provide written comments to the Area EPS
Operator, which the Area EPS Operator shall address in the final report.
The Area EPS Operator shall issue the final Facilities Study Report within fifteen (15)
Business Days of receiving the Interconnection Customer's comments, or promptly upon
receiving the Interconnection Customer's statement that they will not provide
comments.The Area EPS Operator may reasonably extend the time frame, upon notice
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to the Interconnection Customer, if the Interconnection Customer's comments require
additional analyses or lead to significant modifications by the Area EPS Operator prior to
issuance of the final Facilities Study Report.
7 Interconnection Agreement
7.1. Uniform Contract
For a proposed interconnection that meets the conditions of being classified as a
qualifying facility less than 40 kW, the Area EPS Operator shall provide the
Interconnection Customer with an executable copy of the Area EPS Operator's Uniform
Contract for Cogeneration and Small Power Production Facilities (Uniform Contract),
within five (5) Business Days after the completion of the applicable study(-ies).
7.2. Municipal Minnesota Interconnection Agreement
For proposed interconnections that do not meet the conditions of being classified as a
qualifying facility less than 40 kW or if requested by the Interconnection Customer in
lieu of signing the Uniform Contract, the Area EPS Operator shall provide the
Interconnection Customer an executable Municipal Minnesota Interconnection
Agreement (MMIA) within five (5) Business Days after the completion of the applicable
study(-ies).
7.3. Completion of Agreement
The Interconnection Customer must return a signed Interconnection Agreement at least
thirty (30) Business Days prior to the requested in-service date of the propose DER.The
Area EPS Operator shall sign and return a copy of the fully executed Interconnection
Agreement, back to the Interconnection Customer.
The Interconnection Customer may update the requested in-service date submitted on
the Interconnection Application to a date thirty (30) Business Days or later from the
date on which the Interconnection Customer submits a signed Interconnection
Agreement and payment if required unless the Area EPS Operator agrees to an earlier
date.
Upon receipt of the signed Interconnection Agreement, the Area EPS Operator may
schedule appropriate metering replacements and construction of facilities, if necessary.
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8 Insurance
8.1. Insurance Requirements
At minimum, the Interconnection Customer shall maintain, for the duration the DER
system is interconnected to the Area EPS Operator's Distribution System, general
liability insurance from a qualified insurance agency with a B+or better rating by "Best,"
with a combined single limit of not less than those described in Table 8.1. Such general
liability insurance shall include coverage against claims for damages resulting from (i)
bodily injury, including wrongful death; and (ii) property damage arising out of the
Interconnection Customer's ownership and/or operation of the DER under this
agreement. Evidence of the insurance shall state that coverage provided is primary and
is not excess to or contributing with any insurance or self-insurance by the Area EPS
Operator.
Table 8.1 Liability Insurance Requirements
DER System Size Liability Insurance Requirement
< 40 kW AC $300,000
>_40 kW AC and < 250 kW AC $1,000,000
>_ 250 kW AC and < 5 MW AC $2,000,000
>_ 5 MW AC $3,000,000
For all proposed DER systems, except those that are qualifying systems less than
40 kW AC, the general liability insurance shall, by endorsement to the policy or polices:
• Include the Area EPS Operator as additionally insured.
• Contain severability of interest clause or cross-liability clause.
• Provide that the Area EPS Operator shall not by reason incur liability to the
insurance carrier for the payment of premiums for such insurance if the Area EPS
Operator is included as an additionally insured.
8.2. Self-Insurance
The Interconnection Customer may choose to be self-insured provided there is an
established record of self-insurance. The Interconnection Customer shall supply the
Area EPS Operator at least twenty (20) Business Days prior to the date of initial
operation, evidence of an acceptable plan to self-insure to a level of coverage
equivalent to that required in Section 8.1. Failure of the Interconnection Customer or
the Area EPS Operator to enforce the minimum levels of insurance does not relieve the
Interconnection Customer from maintaining such levels of insurance or relieve the
Interconnection Customer of any liability.
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8.3. Proof of Insurance
The Interconnection Customer shall furnish the required insurance certificates and
endorsements to the Area EPS Operator prior to the initial operation of the DER. A copy
of the Declaration page of the homeowner's insurance policy is a common example of
an insurance certificate.Thereafter, the Area EPS Operator shall have the right to
periodically inspect or obtain a copy of the original policy or polices of insurance.
Additionally, the Area EPS Operator may request to be additionally listed as an
interested third party on the insurance certificates and endorsements for qualifying
facilities less than 40 kW AC, to meet the right to periodically obtain a copy of the policy
or policies of insurance.
9 Timeline Extensions
9.1. Reasonable Efforts
The Area EPS Operator shall make Reasonable Efforts to meet all the time frames
provided in these procedures. If the Area EPS Operator cannot meet a deadline
provided herein, it must notify the Interconnection Customer in writing within three (3)
Business Days after the deadline, explaining the reason for the failure to meet the
deadline and providing an estimated time by which it will complete the applicable
interconnection procedure in the process.
9.2. Extensions
For applicable time frames described in these procedures, the Interconnection
Customer may request in writing one extension equivalent to half of the time originally
allotted (e.g., ten (10) Business Days for a twenty (20) Business Days original time
frame), which the Area EPS Operator may not unreasonably refuse. No further
extensions for the applicable time frame shall be granted, absent a Force Majeure Event
or other similarly extraordinary circumstance.
10 Modifications to Application
10.1. Procedures
At any time after the Interconnection Application is deemed complete, the
Interconnection Customer or the Area EPS Operator may identify modifications to the
proposed DER system that may improve costs and benefits.This includes reliability of
the proposed DER system and the ability for the Area EPS Operator to accommodate the
proposed DER system. The Interconnection Customer shall submit to the Area EPS
Operator, in writing, all proposed modifications to any information provided in the
Interconnection Application.The Area EPS Operator cannot unilaterally modify the
Interconnection Application.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
10.2. Timelines
Within ten (10) Business Days of receipt of the proposed modification, the Area EPS
Operator shall evaluate whether the proposed modification to the Interconnection
Application constitutes a Material Modification. The definition in the Section 13 Glossary
of the Process Overview document includes examples of what does and does not
constitute a Material Modification.
The Area EPS Operator shall notify the Interconnection Customer in writing of the final
determination of the proposed modification. For proposed modifications that are
determined to be a Material Modification the Interconnection Customer may choose to
either: 1) withdraw the proposed modification; or 2) proceed with a new
Interconnection Application.The Interconnection Customer shall provide its choice in
writing to the Area EPS Operator within ten (10) Business Days after being provided the
Material Modification determination. If the Interconnection Customer does not provide
its choice within the timeline, the Interconnection Application shall be considered
withdrawn.
If the proposed modification is not determined to be a Material Modification, then the
Area EPS Operator shall notify the Interconnection Customer in writing that the
modification has been accepted and the Interconnection Customer shall retain its
eligibility for interconnection, including its position in the queue.
11 Interconnection
11.1. Interconnection Milestones
For DER systems that are not a qualifying facility less than 40 kW AC, the
Interconnection Customer and the Area EPS Operator shall agree on milestones for
which each Party is responsible and list them in Attachment IV in the Interconnection
Agreement. To the greatest extent possible, the Parties will identify all design,
procurement, installation and construction requirements associated with the project
while also clearly identifying associated timelines, at the beginning, or as early within
the process as possible, of the design, procurement, installation and construction phase.
A Party's obligation under this provision may be extended by agreement. If a Party
anticipates that they will be unable to meet a milestone for any reason other than a
Force Majeure Event, they shall immediately notify the other Party of the reason(s) for
not meeting the milestone, then propose the earliest reasonable alternative date in
which this and future milestones will be met and request appropriate amendments to
the Interconnection Agreement and its attachments. The Party affected by the failure to
meet a milestone shall not unreasonably withhold agreement to such an amendment
unless:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
• The Party will suffer significant uncompensated economic or operational harm from
the delay, or
• Attainment of the same milestone has previously been delayed, or
• The Party has reason to believe the delay in meeting the milestone is intentional or
unwarranted notwithstanding the circumstance explained by the Party proposing
the amendment.
If the Party affected by the failure to meet a milestone disputes the proposed extension,
the affected Party may pursue dispute resolution as described in the Overview Process
document.
11.2. Metering
Any metering requirements necessitated by the use of the DER system shall be installed
at the Interconnection Customer's expense. The metering-related costs will be included
in the final invoice of interconnection costs to the Interconnection Customer. The
Interconnection Customer is also responsible for metering replacement costs not
covered in the Interconnection Customer's general customer charge. The Area EPS
Operator may charge Interconnection Customers an ongoing metering-related charge
for an estimate of ongoing metering-related costs specifically demonstrated.
11.3. Inspection, Testing and Commissioning
Upon completing construction of the DER system, the Interconnection Customer will
cause the DER system to be inspected or otherwise certified by the appropriate local
electrical wiring inspector with jurisdiction. The Interconnection Customer shall then
arrange for the inspection and testing of the DER system and the Customer's
Interconnection Facilities prior to interconnection pursuant to Minnesota Technical
Requirements. Commissioning tests of the Interconnection Customer's installed
equipment shall be performed pursuant to applicable codes and standards of
Minnesota's Technical Requirements and Section 15 in the Overview Process.
The Interconnection Customer shall notify the Area EPS Operator of testing and
inspection no fewer than five (5) Business Days in advance, or as may be agreed to by
the Parties. The Interconnection Customer shall provide to the Area EPS Operator a
testing procedure that will be followed on the day of testing and inspection no fewer
than ten (10) Business Days prior to the testing and inspection date. The testing
procedure should include tests and/or inspections to confirm the DER system will meet
the technical requirements of interconnection. The Area EPS Operator shall review the
testing procedure for completeness and notify the Interconnection Customer if the
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testing procedure fails to address components of the technical requirements for
interconnection.
The Area EPS Operator shall send qualified personnel to the DER site to inspect the
interconnection and witness the testing.Testing and inspection shall occur on a Business
Day at a mutually agreed upon date and time.The Area EPS Operator may waive the
right to witness the testing.
11.4. Interconnection Costs
11.4.1 Estimation of Interconnection Costs
The Interconnection Customer shall pay for the actual cost of the
Interconnection Facilities and Distribution Upgrades along with the Area EPS
Operator's cost to commission the proposed DER system. An estimate of the
interconnection costs shall be stated in the Uniform Contract or in the MMIA in
Attachment II, Interconnection Facilities and Upgrades, as a detailed itemization
of such costs. If Network Upgrades are required, the actual cost of the Network
Upgrades, including overheads, shall be borne by the Interconnection Customer
pursuant to the Transmission Provider and associated agreements.
11.4.2 Progressive Payment of Interconnection Costs
The Area EPS Operator shall invoice the Interconnection Customer for the
design, engineering, construction and procurement costs of the Interconnection
Facilities and Upgrades described in the MMIA Attachment II, on a monthly
basis, or other manner agreed upon by both Parties in the MMIA, or as described
in the Uniform Contract.The Interconnection Customer shall pay each invoice
within twenty-one (21) Business Days or as agreed to in the MMIA or Uniform
Contract.
11.4.3 Final Accounting of Interconnection Facilities and Upgrade Costs
If distribution or transmission facilities required upgrades to accommodate the
proposed DER system, the Area EPS Operator shall render the final
interconnection cost invoice to the Interconnection Customer within eighty (80)
Business Days (approximately four calendar months) of completing the
construction and installation of the Area EPS Operator's Interconnection Facility
and Upgrades. The Area EPS Operator shall provide the Interconnection
Customer with a final accounting report identifying the difference between the
actual Interconnection Customer's cost responsibility and the Interconnection
Customer's previous aggregate payments to the Area EPS Operator for the
specific DER system interconnection. Upon the final accounting submitted to the
Interconnection Customer, the balance between the actual cost and previously
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aggregated payments shall be paid to the Area EPS Operator within twenty (20)
Business Days. If the balance between the actual cost and previously aggregated
payments is a credit, the Area EPS Operator shall refund the Interconnection
Customer within twenty (20) Business Days.
11.4.4 Final Interconnection Costs without Facilities and Upgrades Needed
Within thirty(30) Business Days the final invoice for the interconnection costs
shall be rendered to the Interconnection Customer once the proposed DER
system has been commissioned by the Area EPS Operator, or upon the
commissioning being waived by the Area EPS Operator.The Interconnection
Customer shall make payment to the Area EPS Operator within twenty-one (21)
Business Days of receipt, or as otherwise stated in the Uniform Contract or
MMIA.
11.5. Security of Payment
At the option of the Area EPS Operator, either the "Traditional Security" or the
"Modified Security" method shall be used for assurance of payment of interconnection
cost.
Under the Traditional Security method, the Interconnection Customer shall provide
reasonable, adequate assurances of credit, including a letter of credit or personal
guaranty of payment and performance from a creditworthy entity acceptable under the
Area EPS Operator credit policy. The letter of credit shall also include procedures for the
unpaid balance of the estimated amount shown in the Interconnection Agreement for
the totality of all anticipated work or expense incurred by the Area EPS Operator
associated with the Interconnection Application. The payment for these estimated costs
shall be as follows:
• One-third of estimated costs, shall be due no later than when the Interconnection
Customer signs the Interconnection Agreement.
• An additional one-third of estimated costs, shall be due prior to initial energization
of the DER with the Area EPS Operator.
• After the project completion, the remainder of actual costs, incurred by Area EPS
Operator, shall be due within thirty (30) Business Days from the date the invoice is
mailed.
Under the Modified Security method, at least twenty(20) Business Days prior to the
commencement of the design, procurement, installation, or construction of a discrete
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portion of the Area EPS Operator's Interconnection Facilities and Upgrades, the
Interconnection Customer shall provide the Area EPS Operator, at the Interconnection
Customer's option, a guaranty, letter of credit or other form of security that is
reasonably acceptable to the Area EPS Operator and is consistent with the Minnesota
Uniform Commercial Code. Such security for payment shall be in an amount sufficient to
cover the costs for constructing, designing, procuring, and installing the applicable
portion of the Area EPS Operator's Interconnection Facilities and Upgrades and shall be
reduced on a dollar-for-dollar basis for payments made to the Area EPS Operator under
the Interconnection Agreement during its term.
The guaranty must be made by an entity that meets the creditworthiness requirements
of the Area EPS Operator and contain terms and conditions that guarantee payment of
any amount that may be due from the Interconnection Customer, up to an agreed-to
maximum amount.
The letter of credit must be issued by a financial institution or insurer reasonably
acceptable to the Area EPS Operator and must specify a reasonable expiration date not
sooner than sixty(60) Business Days, (three calendar months), after the due date of the
final accounting report and invoice described in Section 11.4.
11.6. Non-Warranty
Area EPS Operator does not give any warranty, expressed or implied, as to the
adequacy, safety, or other characteristics of any structures, equipment, wires,
appliances or devices owned, operated, installed or maintained by the Interconnection
Customer, including without limitation the DER and any structures, equipment, wires,
appliances or devices not owned, operated or maintained by the Area EPS Operator. The
Area EPS Operator does not guarantee uninterrupted power supply to the DER and will
operate the Distribution System with the same reliability standards for the entire
customer base.
11.7. Authorization for Parallel Operation
The Interconnection Customer shall not operate its DER system in parallel with the Area
EPS Operator's Distribution System without prior written authorization from the Area
EPS Operator. The Area EPS Operator shall provide such authorization within three (3)
Business Days from when the Area EPS Operator receives notification that the
Interconnection Customer has complied with all applicable parallel operations
requirements and commissioning has been successfully completed. Such authorization
shall not be unreasonably withheld, conditioned or delayed.
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11.8. Continual Compliance
The Interconnection Customer shall operate its DER system in compliance with the Area
EPS Operator's technical requirements referred to in the executed Interconnection
Agreement.The Area EPS Operator may periodically inspect, at its own expense, the
operation of DER system as it relates to power quality, thermal limits and reliability.
Failure by the Interconnection Customer to remain in compliance with the technical
requirements will result in the disconnection of the DER system from the Area EPS
Operator's Distribution System.
11.9. Disconnection of DER
The Area EPS Operator has the right to disconnect the DER in the event of the
following:
• Does not continue to follow and maintain IEEE 1547 settings approved by the Area
EPS Operator as indicated by the adopted technical requirements.
• Does not meet all the requirements of the Study Process.
• Refuses to sign either the Interconnection Agreement or the Area EPS Operator's
Uniform Contract.
The Area EPS Operator may temporarily disconnect the DER upon the following
conditions:
• For scheduled outages upon reasonable notice.
• For unscheduled outages or emergency conditions.
• If the DER does not operate in the manner consistent with the Study Process.
The Area EPS Operator shall inform the Interconnection Customer in advance of any
scheduled disconnections, or as reasonable, after an unscheduled disconnection.
17
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Pre-Application Report Request
Persons interested in finding out the additional information regarding the interconnection of a
distributed energy resource to the Utility's distribution system are to fill out this Pre-Application Report
Request. The pre-application report request is to be filled out as completely as possible by the
applicant. The Utility will provide the applicant with a Pre-Application Report within 15 business days
once the completed Pre-Application Report Request and a $300 fee is submitted to the Utility.
a= .ram rce Information
Project Address:
City: State: Zip Code:
GPS Coordinates: Nearby Cross Streets:
Location of the Proposed Point of Common Coupling (e.g. meter number or pole number):
DER Type (Check all that apply):
❑ Solar Photovoltaic ❑ Wind ❑ Battery Storage
❑ Combined Heat and Power ❑ Solar Thermal ❑ Other (please specify)
Total Aggregate Nameplate Rating of Proposed DER System (kW AC):
Phase Configuration of Proposed DER System ❑ Single ❑ Three
Service Voltage of Proposed DER System Volts
Will this be a stand-alone generator not interconnected to onsite load ❑ Yes ❑ No
(not including station service)?
Please attach copy of site map for proposed project and any additional information that may be helpful
in fulfilling the pre-application request. Site map should include true north, proposed project location
including general layout, proposed service point location and major roadways.
Date Received: Application Fee Received: ❑ Yes ❑ No
Date Completed Pre-Application Report Sent to Applicant:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Point of Interconnection — Additional Information
Is the proposed interconnection to an existing service? (If no, applicant is ❑ Yes ❑ No
to skip to the next section.)
Customer Name: Customer Account Number:
Existing loads at site (kW AC):
List future additional loads planned for at site (in kWAC):
Project Contact Information
Full Name:
Name of Business:
Street Address:
City: State: Zip Code:
Email: Phone:
Payment and Agreement
There is a non-refundable $300 fee for the construction of a pre-application report. By signing this
document, I acknowledge and understand that:
• Neither review of this application nor construction of any report shall begin until the full
amount of the fee has been paid to Elk River Municipal Utilities.
• The Utility shall provide a report with only the available information on the proposed point of
interconnection.
• The information provided by the Utility may become outdated and not useful at the time of
submission of a complete Interconnection Application.
• The confidentiality provision as listed in Section 12.1 of the Overview Process of the Municipal
Minnesota Distributed Energy Resource Interconnection Process apply.
• Upon receipt of the report no guarantee is made by the Utility that a future Interconnection
Application will be approved for this proposed site.
Applicant Signature: Date:
***Please print clearly or type and return completed along with any additional documentation***
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Pre-Application Report
This report summarizes information available to the Utility regarding an interconnection of a distributed
energy resource to the Utility's distribution system. The report includes only information that is readily
available to the Utility. This report is not a guarantee by the Utility that a future interconnection
application will be approved for the proposed site. Information provided in this report is subjected to
change as modifications are made to the Utility's distribution system.
Pre-Application Request
Pre-Application ID:
Project Address:
DER Size: kW AC DER Type:
Project Contact:
Email: Phone:
Electric Distribution System Information
Info Not
Available
Total capacity of the circuit based on normal conditions likely to MW AC
serve the proposed PCC
Existing aggregate generation capacity interconnected to the MW AC
circuit likely to serve the proposed PCC
Aggregate queued generation capacity for the circuit likely to MW AC
serve the proposed PCC
Available capacity of the circuit most likely to serve the proposed MW AC
PCC
Estimated peak load of relevant line sections kW AC
Estimated minimum load of relevant line sections (daytime kW AC
minimum load to be specified for solar DER if available.)
Substation Voltage (Nominal Distribution) kV
Substation Voltage (Nominal Transmission) kV
Nominal distribution circuit voltage at proposed PCC kV
PCC: Point of Common Coupling
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Electric Distribution System Information - Continued
Info Not
Available
Approximate circuit distance between the proposed PCC and the Miles
substation:
Distance to three phase circuit (if not already located on a three-phase Miles
circuit):
Limiting conductor ratings from the proposed PCC to the substation Amps
Number of available phases on the area EPS at the proposed PCC Phases
Is the proposed point of common coupling located on a spot network, ❑ Yes ❑ No
grid network, or radial supply?
Is the proposed PCC located behind a line voltage regulator? ❑ Yes ❑ No
Type of voltage regulating devices between substation and proposed Device
PCC A
Device
B
Device
C
Number and type of protection devices between substation and Device
proposed PCC A
Device
B
Device
C
Any additionally known distribution system constraints? ❑ Yes ❑ No
Additional known constraints that could affect installation or operation of the DER or Area EPS at the
proposed PPC are attached to this report. Constraints may include, but are not limited to, electrical
dependencies at that location, short circuit interrupting capacity issues, power quality or stability issues
on the circuit, capacity constraints, or secondary networks.
Utility Information
Report Completed By:
Company:
Project Contact:
Email: Phone:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Simplified Interconnection Application
Persons interested in applying for the interconnection of a distributed energy resource (DER) to the
Utility's distribution system through the Simplified Process are to fill out this Simplified Interconnection
Application. The Simplified Interconnection Application is to be used for inverter-based DER
technologies with the capacity of 20 kW AC or less and is to be filled out completely by the Applicant.
The Simplified Application shall be returned to the Utility with the requested material information and a
non-refundable $100 application fee.
Proposed DER interconnections to the Utility's distribution submitted under the Simplified Process may
be moved into the Fast Track Process if engineering screens are failed during the Simplified
Interconnection Application review. Timeline for review of the Simplified Application is as follows:
• Upon receipt of a Simplified Interconnection Application the Utility has 10 business days to
review the application for completeness.
• If the application is deemed incomplete, the Utility shall notify the Applicant of what additional
information material is required.
• The Applicant has 5 business days to return the missing information material or their application
may lose its queue position and be deemed withdrawn.
• The Utility shall have a total of 20 business days to review the Simplified Interconnection
Application, not including time waiting for additional information material to deem the
application completed.
• The Utility will notify the Application if the proposed DER system is preliminary approved for
interconnection or if the proposed DER system will need to be moved in the Fast Track Process.
Checklist for Submission to Utility
The items below shall be included with submittal of the Simplified Application to the Utility. Failure to
include all items will deem the Simplified Application incomplete.
Included
$100 Non-Refundable Simplified Application Fee ❑ Yes
One-line diagram—Details required on one-line diagram specified at the end of ❑ Yes
the interconnection application.
All Certified Equipment Manufacturer Specification Sheets ❑ Yes
Site Layout Drawing ❑ Yes
Copy of Insurance Declaration page or other acceptable proof of insurance ❑ Yes
Possible Additional Documentation
• If an Application Agent is being used for this project, the Site Layout Drawing must be signed
by the Interconnection Customer indicating Site Control of the DER interconnection location.
• If the DER export capacity is limited, include information material explaining the limiting
capabilities.
• If Energy Storage is included with the proposed DER system include the Energy Storage
Application.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Simplified Interconnection Application
Interconnection Customer
Full Name (must match the name of the existing service account):
Account Number: Meter Number:
Mailing Address:
City: State: Zip Code:
Email: Phone:
Application Agent
Is the Customer using an Application Agent for this application? ❑ Yes ❑ No
If Interconnection Customer is not using an Application Agent, please skip to the next section.
Application Agent:
Company Name:
Email: Phone:
For Office Use Only
Application ID: Queue Number:
Date Received: Application Fee Received: ❑ Yes ❑ No
Date Preliminary Approval Provided to Applicant:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Distributed Energy Resource Information
Location (if different from mailing address of Interconnection Customer):
Will the Proposed DER system be interconnected to an existing electric service? ❑ Yes ❑ No
Is the Distributed Energy Resource a single generating unit or multiple? 0 Single 0 Multiple
DER Type (Check all that apply):
0 Solar Photovoltaic 0 Wind ❑ Energy Storage
0 Combined Heat and Power 0 Solar Thermal 0 Other (please specify)
DER systems with Energy Storage must also submit the Energy Storage Application to the Utility.
Inverter Manufacturer: Model:
Phase Configuration of Proposed DER System: 0 Single 0 Three
Aggregate Inverter(s) Nameplate Rating: kWac kVAac
Is the export capability of the DER limited? 0 Yes 0 No
If the DER export capacity is limited, include information material explaining the limiting capabilities.
Aggregate DER Capacity (the sum of nameplate capacity of all generation
and storage devices at the PCC): kWac
Installed DER System Cost (before incentives): $
Estimated Installation Date:
Equipment Certification
Is the DER equipment certified'? 0 Yes 0 No
Please list all certified IEEE 1547 equipment below. Include all certified equipment manufacturer
specification sheets with the Simplified Application submission.
Equipment Type Certifying Entity
1
2
3
1 Information regarding certified equipment can be found in Section 14 and Section 15 of the Overview Process document.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Agreement
Proposed DER interconnections that are also deemed Qualifying Facilities under Minnesota Statutes
§2168.164 are eligible to sign the Utility's Uniform Contract for Cogeneration and Small Power
Production Facilities. Included in this agreement are payment terms for excess power generated by
the proposed DER system the Utility may purchase. In lieu of the Utility's Uniform Contract for
Cogeneration and Small Power Production Facilities, the Interconnection Customer may choose to
instead sign the Municipal Minnesota Interconnection Agreement(MMIA).
The Interconnection Customer requests an MMIA to be executed in lieu of the
Utility's Uniform Contract for Cogeneration and Small Power Production 0 Yes 0 No
Facilities.
Disclaimers — Must be completed by Interconnection Customer
Initials
The Interconnection Customer has opportunities to request a timeline extension
during the interconnection process. Failure by the Interconnection Customer to
meet or request an extension for a timeline outlined in the Interconnection Process
could result in a withdrawn queue position and the need to re-apply.
Propose DER interconnection to the Utility's distribution submitted under the
Simplified Process may be moved into the Fast Track Process if engineering screens
are failed during the Simplified Application review.
Application Signature —Must be completed by Interconnection Customer
I designate the individual or company listed as my Application Agent to serve as my
agent for the purpose of coordinating with the Area EPS Operators on my behalf
throughout the interconnection process. Initials
I hereby certify that, to the best of my knowledge, the information provided in this Application is true,
and that I have appropriate Site Control in conformance with the Interconnection Process. I agree to
abide by the Municipal Minnesota Distributed Energy Resource Interconnection Process (M-MIP) and
return the Certificate of Completion when the DER has been installed.
Applicant Signature: Date:
***Please print clearly or type and return completed along with any additional documentation***
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Information Required on One-Line Diagram
An Interconnection Application must include a site electrical one-line diagram showing the configuration
of all Distributed Energy Resource equipment, current and potential circuits, and protection and control
schemes. The one-line diagram shall include:
• Applicant name.
• Application ID.
• Installer name and contact information.
• Address where DER system will be installed - must match application address.
o Be sure to list the address for the protective interface equipment if the protective
interface equipment is located at a different address than the DER system.
• Correct positions of all equipment, including but not limited to panels, inverter, and DC/AC
disconnect. Include distances between equipment, and any labeling found on equipment.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Application
Persons interested in applying for the interconnection of a distributed energy resource to the Utility's
distribution system through the Fast Track or Study Processes are to fill out this Interconnection
Application. The Interconnection Application is to be filled out completely by the applicant or as noted
in each section of the application. The Utility will contact the applicant within 10 business days once the
Interconnection Application and the corresponding processing fee is submitted to the Utility. The Utility
will then notify the applicant of the completeness of their application. If the application is deemed
incomplete by the Utility, the Utility will provide the applicant with a list of missing material.The
applicant will then have 10 business days to provide the Utility with this information or request an
extension, otherwise the application will be deemed incomplete and the applicant will lose their place in
the queue. Section that are noted with * are required to be filled out.
Checklist for Submission to Utility
The items below shall be included with submittal of the Interconnection Application to the Utility.
Failure to include all items will deem the Interconnection Application incomplete.
Included
Non-Refundable Processing Fee
Fast Track
• $100+$1/kW for Certified Systems
❑ Yes
• $100+$2/kW for Non-Certified Systems
Study Process
• $1,000+$2/kW down payment. Additional study fees may apply.
One-line diagram
• This one-line diagram must be signed and stamped by a Professional
Engineer licensed in Minnesota if the DER is uncertified greater than 20 kW ❑ Yes
AC or if certified system is over 250 kW.
• Details required on one-line diagram specified at the end of the
interconnection application.
Schematic drawings for all protection and control circuits, relay current circuits, ❑ Yes
relay potential circuits, and alarm/monitoring circuits
Inverter Specification Sheet(s) (if applicable) ❑ Yes
Documentation that describes and details the operation of protection and control ❑ Yes
schemes
Documentation showing site control ❑ Yes
Aerial map showing DER system layout including major roadways and true north ❑ Yes
Possible Additional Documentation
• If the DER export capacity is limited, include information material explaining the limiting
capabilities.
• If Energy Storage is included with the proposed DER system include the Energy Storage
Application.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
General *
Select Review Process: ❑ Fast Track Process ❑ Study Process
❑ New Distribution Energy ❑ Capacity Addition or Material Modification
Application is for: Resource to Existing Distributed Energy Resource
If Capacity Addition or Material Modification to existing facility, please describe:
Distributed Energy Resource will be used for what reason? (Check all that apply):
❑ Net Metering ❑ Supply Power to Interconnection Customer
❑ Supply Power to Area EPS
Installed DER System Cost (before incentives): $
Interconnection Customer *
Full Name (must match the name of the existing service account):
Account Number: Meter Number:
Mailing Address:
City: State: Zip Code:
Email: Phone:
*Indicates section must be completed.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Application Agent *
Is the Customer using an Application Agent for this application? ❑ Yes 0 No
If Interconnection Customer is not using an Application Agent, please skip to the next section.
Application Agent:
Company Name:
Email: Phone:
Distributed Energy Resource Information *
Estimated Installation Date:
Location (if different from mailing address of Interconnection Customer):
Will the Proposed DER system be interconnected to an existing electric service? 0 Yes ❑ No
Is the Distributed Energy Resource a single generating unit or multiple? 0 Single 0 Multiple
DER Type (Check all that apply):
❑ Solar Photovoltaic ❑ Wind 0 Energy Storage
❑ Combined Heat and Power 0 Solar Thermal 0 Other (please specify)
DER systems with Energy Storage must also submit the Energy Storage Application to the Utility.
Total Number of Distributed Energy Resources to be
interconnected pursuant to this Interconnection Application:
Phase configuration of Distributed Energy Resource(s): 0 Single Phase 0 Three Phase
Type of Generator: 0 Inverter 0 Synchronous 0 Induction
Aggregate DER Capacity(the sum of nameplate capacity of all generation and storage devices at the
PCC):
kWac kVAac
*Indicates section must be completed.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Export Capacity Limitation *
Is the export capability of the DER limited? ❑ Yes ❑ No
If the DER export capacity is limited, complete the following sections and include information material
explaining the limiting capabilities.
Maximum Physical Export Capacity Requested: kWac
If Yes, please provide additional details describing method of export limitation:
Load Information *
Interconnection Customer's or Customer-sited Load: kWac
Typical Reactive Load (if known):
Equipment Certification *
Is the DER equipment certified? ❑ Yes ❑ No
Please list all IEEE 1547 certified equipment below. Include all certified equipment manufacturer
specification sheets with the Interconnection Application submission.
Equipment Type Certifying Entity
1
2
3
4
*Indicates section must be completed.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Prime Mover *
Please indicate the prime mover:
❑ Solar Photovoltaic 0 Microturbine ❑ Fuel Cell
0 Reciprocating Engine 0 Gas Turbine 0 Other (please specify)
Is the prime mover compatible with certified protection equipment package? ❑ Yes 0 No
DER Manufacturer: Model Name & Number: Version:
List of Adjustable Set Points for Protection Equipment or Software:
Summer Name Plate Rating: kW„ Summer Name Plate Rating: kW„
Winter Name Plate Rating: kVAaC Winter Name Plate Rating: kVApc
Rated Power Factor: Leading: Lagging:
A completed Power System Load Flow data sheet must be supplied with the Interconnection
Application.
Only appropriate sections beyond this point until the signature page are to be completed.
Distributed Energy Resource Characteristic Data (for Inverter-based machines)
Max design fault contribution current:
Is your response to the previous field an Instantaneous or RMS 0 Instantaneous 0 RMS
measurement?
Harmonic Characteristics:
Start-up Requirements:
*Indicates section must be completed.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Distributed Energy Resource Characteristic Data (for Synchronous machines)
RPM Frequency: Neutral Grounding Resistor:
Direct Axis Synchronous Reactance, Xd: Zero Sequence Reactance, Xo:
Direct Axis Transient Reactance,Xa: KVA Base:
Direct Axis Subtransient Reactance, Xd": Field Volts:
Negative Sequence Reactance,X2: Field Amperes:
Please provide the appropriate IEEE model block diagram of excitation system, governing system and
power system stabilizer (PSS) in accordance with the regional reliability council criteria. A PSS may be
determined to be required by applicable studies. A copy of the manufacturer's block diagram may not
be submitted.
Distributed Energy Resource Characteristic Data (for Induction machines)
RPM Frequency: Neutral Grounding Resistor:
Motoring Power(kW): Exciting Current:
Heating Time Constant: Temperature Rise:
Rotor Resistance, Rr: Frame Size:
Stator Resistance, Rs: Design Letter:
Stator Reactance,Xs: Reactive Power Required In Vars (No Load):
Rotor Reactance, X,.: Reactive Power Required In Vars (Full Load):
Magnetizing Reactance,X11: Total Rotating Inertia, H:
Short Circuit Reactance,Xd":
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Facilities Information
Will a transformer be used between the DER and the Point of ❑ Yes ❑ No
Common Coupling?
Will the transformer be provided by the Interconnection Customer? ❑ Yes ❑ No
If yes, please fill in the fields below.
Proposed location of protective interface equipment on property:
Transformer Data (For Interconnection Customer-Owned Transformer)
What is the phase configuration of the transformer? 0 Single Phase 0 Three Phase
Size (kVA): Transformer Impedance (%): On kVA Base:
Transformer Volts: Delta: Wye: Wye Grounded:
(Primary)
Transformer Volts: Delta: Wye: Wye Grounded:
(Secondary)
Transformer Volts: Delta: Wye: Wye Grounded:
(Tertiary)
Transformer Fuse Data (For Interconnection Customer-Owned Fuse)
Manufacturer: Type: Size: Speed:
Interconnecting Circuit Breaker (For Interconnection Customer-Owned Circuit Breaker)
Manufacturer: Type:
Load Rating (in Amps): Interrupting Rating (In Amps): Trip Speed (Cycles):
Interconnection Protective Relays (For Microprocessor Controlled Relays)
Setpoint Function Minimum Maximum
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Protective Relays (For Relays with Discrete Components)
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Current Transformer Data:
Manufacturer: Type: Accuracy Class: Proposed Ratio Connection:
Manufacturer: Type: Accuracy Class: Proposed Ratio Connection:
Potential Transformer Data:
Manufacturer: Type: Accuracy Class: Proposed Ratio Connection:
Manufacturer: Type: Accuracy Class: Proposed Ratio Connection:
For Office Use Only
Application ID:
Date Received: Application Fee Received: ❑ Yes ❑ No
Date Completed:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Agreement *
Proposed DER interconnections that are also deemed Qualifying Facilities less than 40 kW AC under
Minnesota Statutes§2168.164 are eligible to sign the Utility's Uniform Contract for Cogeneration and
Small Power Production Facilities. Included in this agreement are payment terms for excess power
generated by the proposed DER system the Utility may purchase. In lieu of the Utility's Uniform
Contract for Cogeneration and Small Power Production Facilities, the Interconnection Customer may
choose to instead sign the Municipal Minnesota Interconnection Agreement(MMIA).
The Interconnection Customer requests an MMIA to be executed in lieu of the
Utility's Uniform Contract for Cogeneration and Small Power Production 0 Yes 0 No
Facilities.
Disclaimers — Must be completed by Interconnection Customer *
Initials
The Interconnection Customer has opportunities to request a timeline extension
during the interconnection process. Failure by the Interconnection Customer to
meet or request an extension for a timeline outlined in the Interconnection Process
could result in a withdrawn queue position and the need to re-apply.
Propose DER interconnection to the Utility's distribution submitted under the Fast
Track Process may be moved into the Study Process if engineering screens are failed
during the Interconnection Application review.
Application Signature —Must be completed by Interconnection Customer *
I designate the individual or company listed as my Application Agent to serve as my
agent for the purpose of coordinating with the Area EPS Operators on my behalf
throughout the interconnection process. Initials
I hereby certify that,to the best of my knowledge, the information provided in this Application is true,
and that I have appropriate Site Control in conformance with the Interconnection Process. I agree to
abide by the Municipal Minnesota Distributed Energy Resource Interconnection Process (M-MIP) and
will inform the Utility if the proposed DER system changes from the details listed in this
Interconnection Application.
Applicant Signature: Date:
***Please print clearly or type and return completed along with any additional documentation***
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Information Required on One-Line Diagram
An Interconnection Application must include a site electrical one-line diagram showing the configuration
of all Distributed Energy Resource equipment, current and potential circuits, and protection and control
schemes.The one-line diagram shall include:
• Applicant name.
• Application ID.
• Installer name and contact information.
• Address where DER system will be installed - must match application address.
o Be sure to list the address for the protective interface equipment if the protective
interface equipment is located at a different address than the DER system.
• Correct positions of all equipment, including but not limited to panels, inverter, and DC/AC
disconnect. Include distances between equipment, and any labeling found on equipment.
This one-line diagram must be signed and stamped by a Minnesota licensed Professional Engineer if the
Distributed Energy Resource is larger than 20 kW (if uncertified) and 250 kW (if certified.)
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Storage Application
This form is required in addition to a completed Interconnection Application form for any DER with an
energy storage component. An application to interconnect energy storage is only required for storage
designed to operate in parallel with the distribution system. Electric vehicles and backup generators do
not need to apply.
Energy Storage
Application for: ❑ Stand-alone storage as DER ❑ Storage as component of DER
Customer Account Number:
Address of Generating Facility:
City: State: Zip Code:
Equipment Manufacturer: Equipment Model:
Max Continuous Real Power(In kW): Max Continuous Apparent Power (In kVA):
Power Factor range of adjustability: Peak AC Energy(In kWh):
Is the equipment UL 1741 listed? Manufacturer specification ❑ Yes ❑ No
sheet(s)are required to be attached to this application.
Is the storage 100%charged by a net energy metering eligible
❑ Yes ❑ No
energy source?
Source charging the storage (Check all that apply):
❑ Utility ❑ Wind ❑ Solar
❑ Diesel ❑ Other (please specify)
Is the storage configured to export energy to the Area EPS? ❑ Yes ❑ No
Are the settings accessible to the end user? ❑ Yes ❑ No
For Office Use Only
Application ID: Queue Number:
Date Received:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Energy Storage
Available control operating modes:
Control modes being enabled for interconnection:
For non-export, how does the system determine the magnitude of customer load?
What is the process for changing operational modes of the energy storage?
Please attach any additional materials.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Supplemental Review Offer
The Distributed Energy Resource(DER)Interconnection Application in the name of (Interconnection
Customer) for a DER system described as (description of DER System)
and proposed to be located at (Address or Legal Description)
has failed one or more of the initial engineering screens.To continue with the Interconnection Process,the
Interconnection Customer may choose to continue with a Supplemental Review or may choose the
Interconnection Application to be evaluated under the Study Process track.The Interconnection Customer has
fifteen (15) Business Days to indicate to the Area Electrical Power System (EPS)Operator,the next step in the
Interconnection Process and return this Supplemental Review Offer or the Interconnection Application will only
continue to be evaluated under the Study Process track or be deemed withdrawn.
Interconnection Customer agrees that the Area EPS Operator shall:
Proceed with a Supplemental Review of the Interconnection Application.
Continue evaluation of the Interconnection Application under the Study Process track.
Deem the Interconnection Application withdrawn.
If the Interconnection Customer chooses to proceed with the Supplemental Review,the Interconnection Customer
shall note the order in which the Supplemental Review screens should be performed and indicate the action the
Area EPS Operator should take if a Supplement Review screen has failed.
Supplemental Order to Cost Estimate of
Review Screen Perform Screens Review Screen
Minimum Load
Voltage& Power Quality
Safety& Reliability
Total Deposit Required
Upon failure of a Supplemental Review screen or upon notification the Area EPS Operator is unable to complete a
Supplemental Review screen,the Interconnection Customer agrees that the Area EPS Operator shall:
Proceed with the remaining Supplemental Review screens.
Stop the Supplemental Review screens and continue evaluation of the Interconnection Application under
the Study Process track.
Stop the Supplemental Review screens and contact the Interconnection Customer for further instructions.
Deem the Interconnection Application withdrawn.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
The Area EPS Operator has indicated a good faith estimate of the cost for each Supplemental Review screen.The
full estimate is due as a deposit prior to the start of any Supplemental Review. Upon completion of the
Supplemental Review or termination of the Supplemental Review by the Interconnection Customer,the balance of
the actual Supplemental Review costs will be billed or credited to the Interconnection Customer.The balance shall
be paid in full to the respective party within twenty(20) Business Days of receipt of the final Supplemental Review
invoice from the Area EPS Operator.
The Area EPS Operator shall have thirty(30) Business Days to complete the Supplemental Review upon receipt of a
signed copy of this Supplemental Review Offer and the deposit required.The Area EPS Operator shall provide the
Interconnection Customer with a written report indicating the Supplemental Review results and the underlying
analysis performed.
The Interconnection Customer agrees to terms and conditions specified in this Supplemental Review Offer and in
the Fast Track Process document. The Interconnection Customer understands the Supplemental Review screens will
not start until the deposit is received by the Area EPS Operator.
Interconnection Customer Signature
Date
Application ID:
Date Offer Received: Date Deposit Received:
Date Supplement Review Results Provided to Interconnection Customer:
242
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
/1N///,
Minnesota Municipal Power Agency's 5 kW Hometown ABSTRACT
Solar Agreement outlining the scope, timeline and
Olivia, MN responsibility of cost for a proposed DER's system
impact to the distribution system
INTERCONNECTION
PROCESS
System Impact Study
Agreement
243
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
System Impact Study Agreement
THIS AGREEMENT is made and entered into this day of 20 by and
between , ("Interconnection
Customer"), and , a municipal utility
existing under the laws of the State of Minnesota, ("Area EPS Operator"). Interconnection
Customer and Area EPS Operator each may be referred to as a "Party," or collectively as the
"Parties."
RECITALS
WHEREAS, the Interconnection Customer is proposing to develop a Distributed Energy
Resource (DER) or generating capacity addition to an existing DER consistent with the
Interconnection Application completed by the Interconnection Customer
on (date); and
WHEREAS, the Interconnection Customer desires to interconnect the DER with the Area EPS
Operator's Electric System; S
WHEREAS, the Interconnection Customer has requested the Area EPS Operator to perform a
System Impact Study to assess the impact of interconnecting the DER with the Area EPS
Operator's Electric System, and potential Affected System(s);
NOW,THEREFORE, in consideration of, and subject to, the mutual covenants contained herein
the Parties agreed as follows:
1. When used in this Agreement, with initial capitalization, the terms specified shall have
the meanings indicated, or the meanings specified, in the Municipal Minnesota
Distributed Energy Resources Interconnection Process (M-MIP).
2. The Interconnection Customer elects and the Area EPS Operator shall cause to be
performed a System Impact Study consistent with the M-MIP.The scope of a System
M-MIP System Impact Study Agreement_January 2019 1
244
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Impact Study shall be subject to the assumptions set forth in this Agreement; including
Attachment A.
3. A System Impact Study will be based upon the technical information provided by
Interconnection Customer in the Interconnection Application. The Area EPS Operator
reserves the right to request additional technical information from the Interconnection
Customer as may reasonably become necessary consistent with Good Utility Practice
during the course of the System Impact Study.
4. A System Impact Study may, as necessary, consist of a short circuit analysis, a stability
analysis, a power flow analysis, voltage drop and flicker studies, protection and set point
coordination studies, and grounding reviews. A System Impact Study shall state the
assumptions upon which it is based, state the results of the analyses, and provide the
requirement or potential impediments to providing the requested interconnection
service, including a preliminary indication of the cost and length of time that would be
necessary to correct any problems identified in those analyses and implement the
interconnection. A System Impact Study shall provide a list of facilities that are required
as a result of the Interconnection Application and non-binding good faith estimates of
cost responsibility and time to construct. A Facilities Study may be required to identify
all possibilities of facility upgrades, cost estimates and estimate of construction time.
5. A distribution System Impact Study shall incorporate a distribution load flow study, an
analysis of equipment interrupting ratings, protection coordination study,voltage drop
and flicker studies, protection and set point coordination studies, grounding reviews,
and the impact on electric system operation, as necessary.
6. If the System Impact Study determines Affected Systems may be affected, a separate
Transmission System Impact Study may be required. All Affected Systems shall be
M-MIP System Impact Study Agreement_January 2019 2
245
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
afforded an opportunity to review and comment upon a System Impact Study that
indicates potential adverse system impacts on their electric systems.
7. If the Area EPS Operator uses a queuing procedure for sorting or prioritizing projects
and their associated cost responsibilities for any required Network Upgrades, the
System Impact Study shall consider all Distributed Energy Resources (and with respect
to Section 7.3 below, any identified Upgrades associated with such higher queued
interconnection) that, on the date the System Impact Study is commenced.
7.1. Are directly interconnected with the Area EPS Operator's Electric System; or
7.2. Are interconnected with Affected Systems and may have an impact on the
proposed interconnection; and
7.3. Have a pending higher queued Interconnection Application to interconnect with
the Area EPS Operator's Electric System.
8. A deposit of the equivalent of the good faith estimated cost of a System Impact Study
shall be required from the Interconnection Customer when the signed Agreement is
provided to the Area EPS Operator.
9. Any study fees shall be based on the Area EPS Operator's actual costs and include a
summary of professional time. An invoice shall be sent to the Interconnection Customer
within twenty (20) Business Days after the study is completed and delivered.
10. The Interconnection Customer must pay any study costs that exceed the deposit
without interest, within twenty(20) Business Days, on receipt of the invoice or
resolution of any dispute. If the deposit exceeds the invoiced fees, the Area EPS
M-MIP System Impact Study Agreement_January 2019 3
246
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Operator shall refund such excess within twenty (20) Business Days of the invoice
without interest.
11. Governing Law, Regulatory Authority, and Rules
The validity, interpretation and enforcement of this Agreement and each of its
provisions, shall be governed by the laws of the State of Minnesota.This Agreement is
subject to all Applicable Laws and Regulations. Each Party expressly reserves the right to
seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a
Governmental Authority.
12. Amendment
The Parties may amend this Agreement by a written instrument duly executed by both
Parties.
13. No Third-Party Beneficiaries
This Agreement is not intended to and does not create rights, remedies, or benefits of
any character whatsoever in favor of any persons, corporations, associations, or entities
other than the Parties, and the obligations herein assumed are solely for the use and
benefit of the Parties, their successors in interest and where permitted, their assigns.
14. Waiver
14.1. The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement, will not be considered a waiver
of any obligation, right, or duty of, or imposed upon, such Party.
14.2. Any waiver at any time by either Party of its rights with respect to this
Agreement shall not be deemed a continuing waiver or a waiver with respect to
any other failure to comply with any other obligation, right, duty of this
Agreement.Termination or default of this Agreement for any reason by the
M-MIP System Impact Study Agreement_January 2019 4
247
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Customer, shall not constitute a waiver of the Interconnection
Customer's legal rights to obtain an interconnection from the Area EPS Operator.
Any waiver of this Agreement shall, if requested, be provided in writing.
15. Multiple Counterparts
This Agreement may be executed in two or more counterparts, each of which is deemed
an original but all constitute one and the same instrument.
16. No Partnership
This Agreement shall not be interpreted or construed to create an association,joint
venture, agency relationship, or partnership between the Parties, or to impose any
partnership obligation or partnership liability upon either Party. Neither Party shall have
any right, power or authority to enter into any agreement or undertaking for, or act on
behalf of, or to act as or be an agent or representative of, or to otherwise bind, the
other Party.
17. Severability
If any provision or portion of this Agreement shall for any reason be held or adjudged to
be invalid or illegal or unenforceable by any court of competent jurisdiction or other
Governmental Authority, (1) such portion or provision shall be deemed separate and
independent, (2) the Parties shall negotiate in good faith to restore, insofar as
practicable, the benefits to each Party that were affected by such ruling, and (3) the
remainder of this Agreement shall remain in full force and effect.
18. Subcontractors
18.1. Nothing in this Agreement shall prevent a Party from utilizing the services of any
subcontractor as it deems appropriate to perform its obligations under this
Agreement; provided, however, that each Party shall require its subcontractors
to comply with all applicable terms and conditions of this Agreement, in
M-MIP System Impact Study Agreement_January 2019 5
248
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
providing such services and each Party shall remain primarily liable to the other
Party for the performance of such subcontractor.
18.2. The creation of any subcontract relationship shall not relieve the hiring Party of
any of its obligations under this Agreement. The hiring Party shall be fully
responsible to the other Party for the acts or omissions of any subcontractor the
hiring Party hires, as if no subcontract had been made; provided, however, that
in no event shall the Area EPS Operator be liable for the actions or inactions of
the Interconnection Customer or thier subcontractors with respect to obligations
of the Interconnection Customer under this Agreement. Any applicable
obligation imposed by this Agreement, upon the hiring Party, shall be equally
binding upon, and shall be construed as having application to, any subcontractor
of such Party.
18.3. The obligations under this article will not be limited in any way by any limitation
of subcontractor's insurance.
19. Inclusion of Area EPS Operator Tariffs and Rules
The interconnection services provided under this Agreement, shall at all times, be
subject to the terms and conditions set forth in the tariff schedules and rules applicable
to the electric service provided by the Area EPS Operator, which tariff schedules and
rules are hereby incorporated into this Agreement by this reference. Notwithstanding
any other provisions of this Agreement, the Area EPS Operator shall have the right to
unilaterally change rates, charges, classification, service, tariff, or rule or any agreement
relating thereto.The Interconnection Customer shall have the right to protest any such
change through the Area EPS Operator's dispute resolution process, pursuant to the
Area EPS Operator's rules and regulations.
M-MIP System Impact Study Agreement_January 2019 6
249
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
[Insert Name of Area EPS Operator] [Insert Name of Interconnection Customer]
(Signature) (Signature)
(Title) (Title)
M-MIP System Impact Study Agreement_January 2019 7
250
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment A
Assumptions Used in Conducting the System Impact Study
The System Impact Study shall be based upon the following assumptions:
1) Designation of Point of Common Coupling and configuration to be studied.
2) Designation of alternative Points of DER Interconnection and configuration.
1) and 2) are to be completed by the Interconnection Customer. Other assumptions (attached
to this Agreement) are to be provided by the Interconnection Customer and the Area EPS
Operator.The Area EPS Operator shall use the Reference Point for Applicability which is either
the Point of Common Coupling or the Point(s) of DER Interconnection as described in IEEE 1547.
Additional DER Technical Data Required for System Impact Study
If applicable,the Area EPS Operator shall provide a list of any additional technical data that is
required to adequately perform the System Impact Study. This list of required technical data
shall be attached to this Agreement. As indicated in Section 4 of the Study Process document of
the M-MIP, this information is to be returned with the signed System Impact Study Agreement
and deposit.
Data to Be Provided by the Area EPS Operator with the System Impact Study Agreement
Estimate Cost of System Impact Study $
Time duration to complete System Impact Study Business Days
M-MIP System Impact Study Agreement_January 2019 8
251
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
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ABSTRACT
ISS%Sit,
Agreement outlining the scope, timeline and
responsibility of cost fora proposed DER system's
facility changes to the distribution system
Minnesota Municipal Power Agency's 7 MW Buffalo Solar
Buffalo, MN
INTERCONNECTION
PROCESS
Facility Study Agreement
252
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Facilities Study Agreement
THIS AGREEMENT is made and entered into this day of 20 by and
between , ("Interconnection
Customer"), and , a municipal utility
existing under the laws of the State of Minnesota, ("Area EPS Operator"). Interconnection
Customer and Area EPS Operator each may be referred to as a "Party," or collectively as the
"Parties."
RECITALS
WHEREAS, the Interconnection Customer is proposing to develop a Distributed Energy
Resource (DER) or generating capacity addition to an existing DER consistent with the
Interconnection Application completed by the Interconnection Customer
on (date); and
WHEREAS, the Interconnection Customer desires to interconnect the DER with the Area EPS
Operator's Electric System;
WHEREAS, the Area EPS Operator has completed Initial Review, Supplemental Review, and/or a
System Impact Study, and provided the results of said review to the Interconnection Customer,
or determined none was required; and
WHEREAS, the Interconnection Customer has requested the Area EPS Operator to perform a
Facilities Study(s) to specify, and estimate the cost of, the equipment, engineering,
procurement and construction work, needed to implement the conclusions of the above noted
review in accordance with Good Utility Practice,to physically and electrically connect the DER
with the Area EPS Operator's distribution system.
NOW,THEREFORE, in consideration of, and subject to, the mutual covenants contained herein
the Parties agreed as follows:
M-MIP Facility Study Agreement_January 2019 1
253
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
1. When used in this Agreement, with initial capitalization, the terms specified shall have the
meanings indicated, or the meanings specified, in the Municipal Minnesota Distributed
Energy Resources Interconnection Process (M-MIP).
2. The Interconnection Customer elects and the Area EPS Operator shall cause a Facilities
Study consistent with the standard M-MIP to be performed. The scope of the Facilities
Study shall be subject to data provided in Section 17 to this Agreement.
3. The Facilities Study shall specify and estimate the cost of the equipment, engineering,
procurement and construction work (including overheads), needed to implement the
conclusions of the System Impact Study(s). The Facilities Study shall also identify: 1) the
electrical switching configuration of the equipment, including, without limitation,
transformer, switchgear, meters, and other station equipment, 2) the nature and estimated
cost of the Area EPS Operator's Interconnection Facilities and Upgrades, necessary to
accomplish the interconnection, and 3) an estimate of the time required to complete the
construction and installation of such facilities.
4. The Area EPS Operator may propose to group facilities required for more than one
Interconnection Customer in order to minimize facilities costs through economies of scale.
Any Interconnection Customer may require the installation of facilities required for its own
Distributed Energy Resource, if they are willing to pay the costs of those facilities.
5. A deposit of the equivalent of the good faith estimated cost of a distribution Facility Study
shall be required from the Interconnection Customer when the signed Agreement is
provided to the Area EPS Operator.
6. Any study fees shall be based on the Area EPS Operator's actual costs and include a
summary of professional time. An invoice shall be sent to the Interconnection Customer
within twenty (20) Business Days after the study is completed and delivered.
M-M1P Facility Study Agreement_January 2019 2
254
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
7. The Interconnection Customer must pay any study costs that exceed the deposit without
interest, within twenty (20) Business Days, on receipt of the invoice or resolution of any
dispute. If the deposit exceeds the invoiced fees, the Area EPS Operator shall refund such
excess within twenty (20) Business Days of the invoice without interest.
8. Governing Law, Regulatory Authority, and Rules
The validity, interpretation and enforcement of this Agreement and each of its provisions,
shall be governed by the laws of the State of Minnesota. This Agreement is subject to all
Applicable Laws and Regulations. Each Party expressly reserves the right to seek changes in,
appeal, or otherwise contest any laws, orders, or regulations of a Governmental Authority.
9. Amendment
The Parties may amend this Agreement by a written instrument duly executed by both
Parties.
10. No Third-Party Beneficiaries
This Agreement is not intended to and does not create rights, remedies, or benefits of any
character whatsoever in favor of any persons, corporations, associations, or entities other
than the Parties, and the obligations herein assumed are solely for the use and benefit of
the Parties, their successors in interest and where permitted, their assigns.
11. Waiver
11.1. The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement, will not be considered a waiver of
any obligation, right, or duty of, or imposed upon, such Party.
11.2. Any waiver at any time by either Party of its rights with respect to this Agreement
shall not be deemed a continuing waiver or a waiver with respect to any other failure
M-MIP Facility Study Agreement_January 2019 3
255
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
to comply with any other obligation, right, duty of this Agreement. Termination or
default of this Agreement for any reason by the Interconnection Customer, shall not
constitute a waiver of the Interconnection Customer's legal rights to obtain an
interconnection from the Area EPS Operator. Any waiver of this Agreement shall, if
requested, be provided in writing.
12. Multiple Counterparts
This Agreement may be executed in two or more counterparts, each of which is deemed an
original but all constitute one and the same instrument.
13. No Partnership
This Agreement shall not be interpreted or construed to create an association,joint
venture, agency relationship, or partnership between the Parties, or to impose any
partnership obligation or partnership liability upon either Party. Neither Party shall have any
right, power or authority to enter into any agreement or undertaking for, or act on behalf
of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.
14. Severability
If any provision or portion of this Agreement shall for any reason be held or adjudged to be
invalid or illegal or unenforceable by any court of competent jurisdiction or other
Governmental Authority, (1) such portion or provision shall be deemed separate and
independent, (2) the Parties shall negotiate in good faith to restore, insofar as practicable,
the benefits to each Party that were affected by such ruling, and (3) the remainder of this
Agreement shall remain in full force and effect.
15. Subcontractors
15.1. Nothing in this Agreement shall prevent a Party from utilizing the services of any
subcontractor as it deems appropriate to perform its obligations under this
Agreement; provided, however, that each Party shall require its subcontractors to
M-M1P Facility Study Agreement_January 2019 4
256
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
comply with all applicable terms and conditions of this Agreement, in providing such
services and each Party shall remain primarily liable to the other Party for the
performance of such subcontractor.
15.2. The creation of any subcontract relationship shall not relieve the hiring Party of any
of its obligations under this Agreement. The hiring Party shall be fully responsible to
the other Party for the acts or omissions of any subcontractor the hiring Party hires,
as if no subcontract had been made; provided, however, that in no event shall the
Area EPS Operator be liable for the actions or inactions of the Interconnection
Customer or their subcontractors with respect to obligations of the Interconnection
Customer under this Agreement. Any applicable obligation imposed by this
Agreement, upon the hiring Party, shall be equally binding upon, and shall be
construed as having application to, any subcontractor of such Party.
15.3. The obligations under this article will not be limited in any way by any limitation of
subcontractor's insurance.
16. Inclusion of Area EPS Operator Tariffs and Rules
The interconnection services provided under this Agreement, shall at all times, be subject to
the terms and conditions set forth in the tariff schedules and rules applicable to the electric
service provided by the Area EPS Operator, which tariff schedules and rules are hereby
incorporated into this Agreement by this reference. Notwithstanding any other provisions
of this Agreement, the Area EPS Operator shall have the right to unilaterally change rates,
charges, classification, service, tariff, or rule or any agreement relating thereto.The
Interconnection Customer shall have the right to protest any such change through the Area
EPS Operator's dispute resolution process, pursuant to the Area EPS Operator's rules and
regulations.
17. Data to be Provide by Interconnection Customer with Facilities Agreement
M-MIP Facility Study Agreement_January 2019 5
257
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
17.1. The Interconnection Customer shall be available to meet on site with the Area EPS
Operator within five (5) Business Days of signing the Facilities Study Agreement.The
personnel furnished by the Interconnection Customer for this site visit shall bring
detailed information on the site layout.The Area EPS Operator may request the
Interconnection Customer physically places stakes at the locations of major
components.
17.2. The Interconnection Customer shall furnish a final site plan detailing the location of
major equipment at the time this agreement is returned. The Point of Common
Coupling (PCC) and Point of Distributed Resource Connection (PoC) shall be clearly
marked. The site plan shall depict any nearby roads and be labeled with the road
name. Accurate dimensions shall be included on the site plan. The proper emergency
(911) address, corresponding to the site, shall be labeled on the site plan.
17.3. The Interconnection Customer shall furnish a final one-line diagram detailing the
electrical connections between major components. The one-line shall be returned
with the signed Facilities Study Agreement.
17.4. Technical cut sheets on all equipment related to metering shall be provided by the
Interconnection Customer along with the signed Facilities Study Agreement.
17.5. If available, copies of the Conditional Use Permits(s) from all necessary authorities
shall be returned by the Interconnection Customer with the signed Facilities Study
Agreement.
17.6. The Interconnection Customer shall secure any necessary easements from private
land owners prior to signing the Facilities Study Agreement. Documentation of any
such agreements shall be provided to the Area EPS Operator.
M-MIP Facility Study Agreement_January 2019 6
258
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
17.7. In the event that the Area EPS Operator determines a site survey is necessary in order
to complete a Facilities Study,the Interconnection Customer shall make good faith
efforts to complete the survey in a timely manner.
17.8. The Facilities Study assumes all land use permits required for the interconnection will
be approved by the proper authorities. Permits are submitted after Interconnection
Agreement is signed and may impact project costs (i.e. overhead to underground
requirements.)
17.9. The Interconnection Customer and Area EPS Operator shall provide a single point of
contact for design and construction related matters. The Interconnection Customer
single point of contact shall respond in a timely manner to the Area EPS Operator's
questions during the Facilities Study.
17.10.In the event that an Interconnection Customer does not provide the necessary
information described in this Agreement, or if the Interconnection Customer takes
more than five (5) Business Days to respond to a question during the Facilities Study,
the Facilities Study timeframe shall pause until the question is resolved.
M-MIP Facility Study Agreement_January 2019 7
259
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
[Insert Name of Area EPS Operator] [Insert Name of Interconnection Customer]
(Signature) (Signature)
(Title) (Title)
Data to Be Provided by the Area EPS Operator with the Facilities Study Agreement
Estimate Cost of Facility Study $
Time duration to complete Facility Study Business Days
M-MIP Facility Study Agreement_January 2019 8
260
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
ABSTRACT
Agreement outlining the scope, timeline and
responsibility of cost for a proposed DER system's
system impact to the transmission system
Minnesota Municipal Power Agency Oak Glen Wind
Turbine
Blooming Prairie, MN
INTERCONNECTION
PROCESS
Transmission System
Study Impact Agreement
261
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Transmission System Impact Study Agreement
THIS AGREEMENT is made and entered into this day of 20 by and
between , ("Interconnection
Customer"), and , a municipal utility
existing under the laws of the State of Minnesota, ("Area EPS Operator"), and
, a transmission system owner existing under the laws of
the State of Minnesota, ("Transmission Provider"). Interconnection Customer, Area EPS
Operator and Transmission Provider each may be referred to as a "Party," or collectively as the
"Parties."
RECITALS
WHEREAS, the Interconnection Customer is proposing to develop a Distributed Energy
Resource or generating capacity addition to an existing DER, (in either case referred to herein
as a "DER"), interconnected to the Area EPS Operator's Electric System, as described in the
Interconnection Application completed by the Interconnection Customer and submitted to the
Area EPS Operator on ; and
WHEREAS, the Interconnection Customer has requested the Area EPS Operator to work with
the Transmission Provider to perform a Transmission System Impact Study to assess the impact
on the Transmission Provider's electric transmission system of interconnecting the DER with the
Area EPS Operator's Electric System, and to determine if there are potential Affected System(s)
in addition to the Transmission Provider's electric transmission system;
NOW,THEREFORE, in consideration of, and subject to, the mutual covenants contained herein
the Parties agreed as follows:
M-MIP Transmission System Impact Study Agreement- February 2019 1
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
1. When used in this Agreement, with initial capitalization, the terms specified shall have
the meanings indicated, or the meanings specified, in the Municipal Minnesota
Distributed Energy Resources Interconnection Process (M-MIP).
2. The Interconnection Customer requests and the Area EPS Operator and its Transmission
Provider agrees to perform a Transmission System Impact Study consistent with the M-
MIP. The Interconnection Customer understands and acknowledges that each of the
Area EPS Operator and the Transmission Provider may perform separate system impact
studies. The scope of a Transmission System Impact Study shall be subject to the
assumptions set forth in this Agreement; including Attachment A.
3. A Transmission System Impact Study will be based upon the technical information
provided by Interconnection Customer in the Interconnection Application. Each of the
Area EPS Operator and Transmission Provider reserve the right to request additional
technical information from the Interconnection Customer as may reasonably become
necessary consistent with Good Utility Practice during the course of the System Impact
Study. Neither the Area EPS Operator nor the Transmission Provider will be obligated to
commence the Transmission System Impact Study until each has received adequate
technical information from the Interconnection Customer.
4. In the event that the applicable bulk transmission system generation interconnection
process, (such as the Midcontinent Independent System Operator or MISO, or
Southwest Power Pool or SPP), supersedes the M-MIP, the Transmission Provider will so
notify the Interconnection Customer and this Agreement will be deemed terminated.
5. A Transmission System Impact Study may, as determined by the Area EPS Operator
and/or the Transmission Provider, consist of a short circuit analysis, a stability analysis, a
power flow analysis, voltage analysis and flicker studies, protection and set point
coordination studies, and grounding reviews. A Transmission System Impact Study shall
M-MIP Transmission System Impact Study Agreement- February 2019 2
263
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
state the assumptions upon which it is based, indicate the applicable Local Planning
Criteria used, state the results of the analyses, and provide the requirement or potential
impediments to providing the requested interconnection service, including a preliminary
indication of the cost and length of time that would be necessary to correct any
problems identified in those analyses and provide for the interconnection. A
Transmission System Impact Study shall provide a list of transmission facilities that are
required as a result of the Interconnection Application and non-binding good faith
estimates of cost responsibility and time to construct such transmission facilities. A
Facilities Study may be required to identify all possibilities of facility upgrades, cost
estimates and estimate of construction time.
6. If the Transmission Provider determines there are any potential Affected System(s), the
Affected System(s) will be asked to participate in or review/comment on the
Transmission System Impact Study. The Affected System(s) will be entitled to determine
in their sole discretion the extent of their participation or review/comment, and will be
entitled to apply their respective Local Planning Criteria.The Transmission Provider will
inform the Interconnection Customer of the estimated cost of the Affected System's
participation in or review/comment on the Transmission System Impact Study.
7. The Transmission System Impact Study will be scheduled for completion taking in
consideration for prior-queued projects in the applicable bulk transmission generation
interconnection queue or Transmission Provider's generation interconnection queue.
The Transmission Provider and/or the Area EPS Operator shall notify the
Interconnection Customer if such condition exists.
8. The Area EPS Operator and/or the Transmission Provider shall provide an estimate of
the cost of the Transmission System Impact Study to the Interconnection Customer. At
the time that the Interconnection Customer executes this Agreement, the
Interconnection Customer shall provide a deposit of the estimated cost(s) of the
M-MIP Transmission System Impact Study Agreement- February 2019 3
264
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Transmission System Impact Study to the Area EPS Operator and/or Transmission
Provider, as applicable.
9. The Interconnection Customer shall be responsible for the actual costs incurred by the
Area EPS Operator and/or the Transmission Provider to perform the Transmission
System Impact Study. An invoice documenting the actual costs shall be sent by the Area
EPS Operator and/or Transmission Provider to the Interconnection Customer within
twenty (20) Business Days after the study is completed and delivered.
10. The Interconnection Customer shall pay the invoice amount less the deposit amount,
within twenty (20) Business Days, on receipt of the invoice. If the deposit exceeds the
actual cost of the study, the Transmission Provider shall refund such excess amount
within twenty (20) Business Days of the date of the invoice.
11. Governing Law, Regulatory Authority, and Rules
The validity, interpretation and enforcement of this Agreement and each of its
provisions, shall be governed by the laws of the State of Minnesota.This Agreement is
subject to all Applicable Laws and Regulations. Each Party expressly reserves the right to
seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a
Governmental Authority.
12. Amendment
The Parties may amend this Agreement by a written instrument duly executed by both
Parties.
13. No Third-Party Beneficiaries
This Agreement is not intended to and does not create rights, remedies, or benefits of
any character whatsoever in favor of any persons, corporations, associations, or entities
M-MIP Transmission System Impact Study Agreement- February 2019 4
265
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
other than the Parties, and the obligations herein assumed are solely for the use and
benefit of the Parties, their successors in interest and where permitted, their assigns.
14. Waiver
14.1. The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement, will not be considered a waiver
of any obligation, right, or duty of, or imposed upon, such Party.
14.2. Any waiver at any time by either Party of its rights with respect to this
Agreement shall not be deemed a continuing waiver or a waiver with respect to
any other failure to comply with any other obligation, right, duty of this
Agreement. Termination or default of this Agreement for any reason by the
Interconnection Customer, shall not constitute a waiver of the Interconnection
Customer's legal rights to obtain an interconnection from the Area EPS Operator.
Any waiver of this Agreement shall, if requested, be provided in writing.
15. Multiple Counterparts
This Agreement may be executed in two or more counterparts, each of which is deemed
an original but all constitute one and the same instrument.
16. No Partnership
This Agreement shall not be interpreted or construed to create an association,joint
venture, agency relationship, or partnership between the Parties, or to impose any
partnership obligation or partnership liability upon a Party. No Party shall have any right,
power or authority to enter into any agreement or undertaking for, or act on behalf of,
or to act as or be an agent or representative of, or to otherwise bind, any other Party.
17. Severability
If any provision or portion of this Agreement shall for any reason be held or adjudged to
be invalid or illegal or unenforceable by any court of competent jurisdiction or other
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Governmental Authority, (1) such portion or provision shall be deemed separate and
independent, (2)the Parties shall negotiate in good faith to restore, insofar as
practicable, the benefits to each Party that were affected by such ruling, and (3) the
remainder of this Agreement shall remain in full force and effect.
18. Subcontractors
18.1. Nothing in this Agreement shall prevent a Party from utilizing the services of any
subcontractor as it deems appropriate to perform its obligations under this
Agreement; provided, however, that each Party shall require its subcontractors
to comply with all applicable terms and conditions of this Agreement, in
providing such services and each Party shall remain primarily liable to the other
Party for the performance of such subcontractor.
18.2. The creation of any subcontract relationship shall not relieve the hiring Party of
any of its obligations under this Agreement. The hiring Party shall be fully
responsible to the other Parties for the acts or omissions of any subcontractor
the hiring Party hires, as if no subcontract had been made; provided, however,
that in no event shall the Area EPS Operator or the Transmission Provider be
liable for the actions or inactions of the Interconnection Customer or its
subcontractors with respect to obligations of the Interconnection Customer
under this Agreement. Any applicable obligation imposed by this Agreement,
upon the hiring Party, shall be equally binding upon, and shall be construed as
having application to, any subcontractor of such Party.
18.3. The obligations under this article will not be limited in any way by any limitation
of subcontractor's insurance.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
19. Inclusion of Area EPS Operator Tariffs and Rules
The interconnection services provided under this Agreement, shall at all times, be
subject to the terms and conditions set forth in the tariff schedules and rules applicable
to the electric service provided by the Area EPS Operator, which tariff schedules and
rules are hereby incorporated into this Agreement by this reference. Notwithstanding
any other provisions of this Agreement, the Area EPS Operator shall have the right to
unilaterally change rates, charges, classification, service, tariff, or rule or any agreement
relating thereto.The Interconnection Customer shall have the right to protest any such
change through the Area EPS Operator's dispute resolution process, pursuant to the
Area EPS Operator's rules and regulations.
IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
[Insert Name of Area EPS Operator] [Insert Name of Interconnection Customer]
(Signature) (Signature)
(Title) (Title)
[Insert Name of Transmission Provider]
(Signature)
(Title)
M-MIP Transmission System Impact Study Agreement- February 2019 7
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment A
Assumptions Used in Conducting the Transmission System Impact Study
The Transmission System Impact Study shall be based upon the following assumptions:
1) Designation of Point of Common Coupling and configuration to be studied.
2) Designation of alternative Points of DER Interconnection and configuration.
1) and 2) are to be completed by the Interconnection Customer. Other assumptions (listed
below) are to be provided by the Interconnection Customer, the Area EPS Operator and the
Transmission Provider.The Area EPS Operator and Transmission Provider shall use the
Reference Point for Applicability which is either the Point of Common Coupling or the Point(s)
of DER Interconnection as described in IEEE 1547.
Additional DER Technical Data Required for Transmission System Impact Study
If applicable, the Transmission Provider shall attach a list to this Agreement any additional
technical data that is required to adequately perform the Transmission System Impact Study. As
indicated in Section 4 of the Study Process document of the M-MIP, this information is to be
returned with the signed Transmission System Impact Study Agreement and deposit.
Data to Be Provided by the Area EPS Operator and Transmission Provider with the
Transmission System Impact Study Agreement
Estimate Cost of Transmission System Impact Study $
Time duration to complete Transmission System Impact Study Business Days
M-MIP Transmission System Impact Study Agreement- February 2019 8
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
ABSTRACT
Interconnection agreement for net energy billing DER
systems or DER systems up to 100 kW that are
compensated at avoided cost.
Minnesota Municipal Power Agency 5 kW Hometown Solar
Shakopee, MN
UNIFORM
CONTRACT
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
UNIFORM CONTRACT FOR COGENERATION AND SMALL POWER
PRODUCTION FACILITIES
THIS CONTRACT is entered into , , by
, a municipal utility under Minnesota law, (hereafter called
"Utility") and (hereafter called "QF").
RECITALS
The QF has installed electric generating facilities, consisting of
(Description of facilities), rated at kilowatts AC
of electricity, on property located at
The QF is a customer of the Utility located within the assigned electric service territory of
the Utility.
The QF is prepared to generate electricity in parallel with the Utility.
The QF's electric generating facilities meet the requirements of the rules adopted by the
Utility on Cogeneration and Small Power Production and any technical standards for
interconnection the Utility has established that are authorized by those rules.
The Utility is obligated under federal and Minnesota law to interconnect with the QF and to
purchase electricity offered for sale by the QF.
A contract between the QF and the Utility is required.
AGREEMENTS
The QF and the Utility agree:
1. The Utility will sell electricity to the QF under the rate schedule in force for the class
of customer to which the QF belongs.
2. The Utility will buy electricity from the QF under the current rate schedule filed with
the city council or city-appointed governing body of the utility. The QF elects the
rate schedule category hereinafter indicated:
a. Average retail utility energy rate.
• QF capacity must be less than 40 kW.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
b. Simultaneous purchase and sale billing rate.
• QF capacity must be less than 40 kW.
c. Roll-over credits.
• QF capacity must be less than 40 kW.
d. Time-of-day purchase rates.
• QF capacity must be 40 kW or more and less than or equal to 100 kW.
A copy of the presently approved rate schedule is attached to this contract.
3. The rates for sales and purchases of electricity may change over the time this
contract is in force, due to actions of the Utility or the State of Minnesota, and the
QF and the Utility agree that sales and purchases will be made under the rates in
effect each month during the time this contract is in force.
4. The Utility will compute the charges and payments for purchases and sales for
each billing period. Any net credit to the QF, other than kilowatt-hour credits under
clause 2(c), will be made under one of the following options as chosen by the QF.
a. Credit to the QF's account with the Utility.
b. Paid by check or electronic payment service to the QF within fifteen (15)
days of the billing date.
5. Renewable energy credits associated with generation from the facility are owned
by:
6. The QF must operate its electric generating facilities within any rules, regulations,
and policies adopted by the Utility not prohibited by the rules governing
Cogeneration and Small Power Production on the Utility's system which provide
reasonable technical connection and operating specifications for the QF and are
consistent with the Minnesota Public Utilities Commission's rules on Cogeneration
and Small Power Production, as required under Minnesota Statutes §216B.164,
subdivision 9.
7. The QF will not enter into an arrangement whereby electricity from the generating
facilities will be sold to an end user in violation of the Utility's exclusive right to
provide electric service in its service area under Minnesota Statutes, §216B.37-44.
8. The QF will operate its electric generating facilities so that they conform to the
national, state, and local electric and safety codes, and will be responsible for the
costs of conformance.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
9. The QF is responsible for the actual, reasonable costs of interconnection which are
estimated to be $ . The QF will pay the Utility in this way:
10. The QF will give the Utility reasonable access to its property and electric generating
facilities if the configuration of those facilities does not permit disconnection or
testing from the Utility 's side of the interconnection. If the Utility enters the QF's
property, the Utility will remain responsible for its personnel.
11. The Utility may stop providing electricity to the QF during a system emergency. The
Utility will not discriminate against the QF when it stops providing electricity or
when it resumes providing electricity.
12. The Utility may stop purchasing electricity from the QF when necessary for the
Utility to construct, install, maintain, repair, replace, remove, investigate, or inspect
any equipment or facilities within its electric system. The Utility may stop
purchasing electricity from the QF in the event the generating facilities listed in this
contract are documented to be causing power quality, safety or reliability issues to
the Utility's electric distribution system.
The Utility will notify the QF before it stops purchasing electricity in this way:
13. The QF will keep in force general liability insurance against personal or property
damage due to the installation, interconnection, and operation of its electric
generating facilities. The amount of insurance coverage will be $
(The amount must be consistent with the distributed generation tariff adopted by
the Utility pursuant to Minnesota Statutes §216B.1611, subdivision 3, clause 2.)
14. The QF and the Utility agree to attempt to resolve all disputes arising hereunder
promptly and in a good faith manner.
15. The city council or city-appointed body governing the Utility has authority to
consider and determine disputes, if any, that arise under this contract in
accordance with procedures in the rules it adopts implementing Minnesota Statute
§216B.164, pursuant to §216B.164, subdivision 9.
16. This contract becomes effective as soon as it is signed by the QF and the Utility.
This contract will remain in force until either the QF or the Utility gives written notice
to the other that the contract is canceled. This contract will be canceled thirty (30)
days after notice is given. If the listed electric generating facilities are not
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
interconnected to the Utility's distribution system within twelve months of the
contract being signed by the QF and the Utility, the contract terminates. The QF
and the Utility may delay termination by mutual agreement.
17. Neither the QF nor the Utility will be considered in default as to any obligation if the
QF or the Utility is prevented from fulfilling the obligation due to an act of God, labor
disturbance, act of public enemy, war, insurrection, riot, fire, storm or flood,
explosion, breakage or accident to machinery or equipment, an order, regulation or
restriction imposed by governmental, military or lawfully established civilian
authorities, or other cause beyond the QF's or Utility's control. However, the QF or
Utility whose performance under this contract is hindered by such an event shall
make all reasonable efforts to perform its obligations.
18. This contract can only be amended or modified by mutual agreement in writing
signed by the QF and the Utility.
19. The QF must notify the Utility prior to any change in the electric generating
facilities' capacity size or generating technology according to the interconnection
process adopted by the Utility.
20. Termination of this contract is allowed (i) by the QF at any time without restriction;
(ii) by Mutual Agreement between the Utility and the QF; (iii) upon abandonment or
removal of electric generating facilities by the QF; (iv) by the Utility if the electric
generating facilities are continuously non-operational for any twelve (12)
consecutive month period; (v) by the Utility if the QF fails to comply with applicable
interconnection design requirements or fails to remedy a violation of the
interconnection process; or (vi) by the Utility upon breach of this contract by the QF
unless cured with notice of cure received by the Utility prior to termination.
21. In the event this contract is terminated, the Utility shall have the rights to disconnect
its facilities or direct the QF to disconnect its generating facilities.
22. This contract shall continue in effect after termination to the extent necessary to
allow either the Utility or the QF to fulfill rights or obligations that arose under the
contract.
23. Transfer of ownership of the generating facilities shall require the new owners and
the Utility to execute a new contract. Upon the execution of a new contract with the
new owners this contract shall be terminated.
24. The QF and the Utility shall at all times indemnify, defend, and save each other
harmless from any and all damages, losses, claims, including claims and actions
relating to injury or death of any person or damage to property, costs and
expenses, reasonable attorneys' fees and court costs, arising out of or resulting
from the QF's or the Utility's performance of its obligations under this contract,
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
except to the extent that such damages, losses or claims were caused by the
negligence or intentional acts of the QF or the Utility.
25. The Utility and the QF will each be responsible for its own acts or omissions and
the results thereof to the extent authorized by law and shall not be responsible for
the acts or omissions of any others and the results thereof.
26. The QF's and the Utility's liability to each other for failure to perform its obligations
under this contract shall be limited to the amount of direct damage actually
occurred. In no event, shall the QF or the Utility be liable to each other for any
punitive, incidental, indirect, special, or consequential damages of any kind
whatsoever, including for loss of business opportunity or profits, regardless of
whether such damages were foreseen.
27. The Utility does not give any warranty, expressed or implied, to the adequacy,
safety, or other characteristics of the QF's interconnected system.
28. This contract contains all the agreements made between the QF and the Utility.
The QF and Utility are not responsible other than those stated in this contract.
THE QF AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE TO BE
BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY HAVE EACH
SIGNED THIS CONTRACT BELOW ON THE DATE LISTED BY SIGNER.
QF
By:
Printed Name:
DATE:
UTILITY
By:
Printed Name:
DATE:
Contract Version: February 2019
5
275
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
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ABSTRACT
For use in lieu of the Utility's Uniform Contract
Minnesota Municipal Power Agency's 7 MW Buffalo Solar
Buffalo, MN
INTERCONNECTION
AGREEMENT
276
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Contents
i. Contact Information 1
1 Scope and Limitations of Agreement 2
2 Responsibilities of the Parties 3
3 Parallel Operation Obligations 4
4 Metering 4
5 Distributed Energy Resource Capabilities and Grid Reliability 4
6 Equipment Testing and Inspection 5
7 Authorization Required Prior to Parallel Operation 5
8 Right of Access 5
9 Effective Date 6
10 Term of Agreement 6
11 Termination 6
12 Temporary Disconnection 6
13 Cost Responsibility for Interconnection Facilities and Distribution Upgrades 8
14 Cost Responsibility for Network Upgrades 9
15 Billing, Payment, Milestones, and Financial Security 11
16 Assignment, Force Majeure, Consequential Damages, and Default 12
17 Limitations of Liability 12
18 Non-Warranty 13
19 Indemnity 13
20 Consequential Damages 14
21 Force Majeure 14
22 Default 15
23 Insurance 15
24 Confidentiality 16
25 Disputes 17
26 Taxes 17
27 Miscellaneous 17
28 Notices 20
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
29 Signatures 24
Attachment I: Glossary of Terms 25
Attachment II: Description and Costs of the Distributed Energy Resource, Interconnection
Facilities, and Metering Equipment 31
Attachment III: One-line Diagram Depicting the Distributed Energy Resource, Interconnection
Facilities, and Metering Equipment, and Upgrades 32
Attachment IV: Milestones 33
Attachment V: Additional Operating and Maintenance Requirements for the Area EPS
Operator's Distribution System and Affected Systems Need to Support the Interconnection
Customer's Needs 35
Attachment VI: Area EPS Operator's Description of Distribution and Network Upgrades and
Good Faith Estimates of Upgrade Costs 36
Attachment VII: Assignment of Interconnection Agreement 37
ii
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
i. Contact Information
Contact information for each Party is listed below along with the basic information describing
the Distributed Energy Resource (DER) system.
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
DER System Information
Application Number:
Type of DER System:
Capacity Rating of System (AC):
Limited Capacity Rating (AC):
Address of DER System:
Municipal Minnesota Interconnection Agreement_January 2019 1
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
THIS AGREEMENT is made and entered into this day of 20 by and
between , ("Interconnection
Customer"), and , a municipal utility
existing under the laws of the State of Minnesota, ("Area EPS Operator"). Interconnection
Customer and Area EPS Operator each may be referred to as a "Party," or collectively as the
"Parties."
In consideration of the mutual covenants set forth herein, the Parties agree as follows:
1 Scope and Limitations of Agreement
1.1. This Agreement is intended to provide for the Interconnection Customer to
interconnect at the Point of Common Coupling and operate a Distributed Energy
Resource with a Nameplate Rating of 10 Megawatts (MW) or less in parallel with the
Area EPS at the location identified above and in the Interconnection Application.
1.2. This Agreement shall be used for all Interconnection Applications submitted under
the Municipal Minnesota Distributed Energy Resources Interconnection Process (M-
MIP) except for those Interconnection Applications that qualify and choose for the
Uniform Contract to replace the need for this Agreement.
1.3. This Agreement governs the terms and conditions under which the Interconnection
Customer's Distributed Energy Resource will interconnect with, and operate in
parallel with, the Area EPS Operator's Distribution System.
1.4. Capitalized terms used herein shall have the meanings specified in the Glossary of
Terms in Attachment 1, the M-MIP, or the body of this Agreement.
1.5. This Agreement does not constitute an agreement to purchase or deliver the
Interconnection Customer's power. The purchase or delivery of power and other
services that the Interconnection Customer may require will be covered under
separate agreements, if any.The Interconnection Customer will be responsible for
separately making all necessary arrangements (including scheduling) for delivery of
electricity with the applicable Area EPS Operator.
1.6. Nothing in this Agreement is intended to affect any other agreement between the
Area EPS Operator and the Interconnection Customer.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
2 Responsibilities of the Parties
2.1. The Parties shall perform all obligations of this Agreement in accordance with the M-
MIP, Minnesota Technical Requirements, all Applicable Laws and Regulations,
Operating Requirements, and Good Utility Practice.
2.2. The Interconnection Customer shall construct, interconnect, operate and maintain
its Distributed Energy Resource and construct, operate, and maintain its
Interconnection Facilities in accordance with the applicable manufacturer's
recommended maintenance schedule and, in accordance with this Agreement, and
with Good Utility Practice.
2.3. The Area EPS Operator shall construct, operate, and maintain its Distribution System
and its Interconnection Facilities in accordance with this Agreement, and with Good
Utility Practice.
2.4. The Interconnection Customer agrees to construct its facilities or systems in
accordance with the Minnesota Technical Requirements and this Agreement;
including, applicable specifications that meet or exceed those provided by the
National Electrical Safety Code, the American National Standards Institute, Institute
of Electrical and Electronics Engineers (IEEE), Underwriter's Laboratory (UL), and
Operating Requirements in effect at the time of construction and other applicable
national and state codes and standards. The Interconnection Customer agrees to
design, install, maintain, and operate its Distributed Energy Resource so as to
reasonably minimize the likelihood of a disturbance adversely affecting or impairing
the system or equipment of the Area EPS Operator and any Affected Systems.
2.5. Each Party shall operate, maintain, repair, and inspect, and shall be fully responsible
for the facilities that it now owns or subsequently owns unless otherwise specified in
the Attachments to this Agreement. Each Party shall be responsible for the safe
installation, maintenance, repair and condition of their respective lines and
appurtenances on their respective sides of the point of common coupling.The Area
EPS Operator and the Interconnection Customer, as appropriate, shall provide
Interconnection Facilities that adequately protect the Area EPS Operator's
Distribution System, personnel, and other persons from damage and injury. The
allocation of responsibility for the design, installation, operation, maintenance and
ownership of Interconnection Facilities shall be delineated in the Attachments to
this Agreement.
2.6. The Area EPS Operator shall coordinate with all Affected Systems to support the
interconnection.
Municipal Minnesota Interconnection Agreement_January 2019 3
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
3 Parallel Operation Obligations
3.1. Once the Distributed Energy Resource has been authorized to commence parallel
operation, the Interconnection Customer shall abide by all rules and procedures
pertaining to the parallel operation of the Distributed Energy Resource in the
applicable control area, including, but not limited to; 1) the rules and procedures
concerning the operation of generation set forth by the applicable system
operator(s) for the Area EPS Operator's Distribution System provided or referenced
in an attachment to this Agreement and; 2)the Operating Requirements set forth in
Attachment 5 of this Agreement. The Minnesota Technical Requirements for
interconnection are covered in a separate document, a copy of which has been
made available to the Interconnection Customer and incorporated and made part of
this Agreement by this reference.
4 Metering
4.1. As described in M-MIP Overview Process Section 9.1, the Interconnection Customer
shall be responsible for the Area EPS Operator's reasonable and necessary cost for
the purchase, installation, operation, maintenance, testing, repair, and replacement
of metering and data acquisition equipment specified in Attachments 2 and 3 of this
Agreement. The Interconnection Customer's metering (and data acquisition, as
required) equipment shall conform to applicable industry rules and Operating
Requirements.
5 Distributed Energy Resource Capabilities and Grid Reliability
5.1. The Minnesota Technical Requirements outlines the Parties responsibilities
consistent with IEEE 1547 Standard for Interconnection and Interoperability of
Distributed Energy Resources with Associated Electric Power Systems Interfaces
which provides requirements relevant to the interconnection and interoperability
performance, operation and testing, and, to safety, maintenance and security
considerations.
5.2. The Area EPS Operator may offer the Interconnection Customer the option to utilize
required DER capabilities to mitigate Interconnection Customer costs related to
Upgrades or Interconnection Facilities to address anticipated system impacts from
the engineering review (i.e. Initial Review, Supplemental Review, or Study Process
described in the M-MIP.)
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
6 Equipment Testing and Inspection
6.1. As described in M-MIP Overview Process Section 9.3, the Interconnection Customer
shall test and inspect its Distributed Energy Resource and Interconnection Facilities
prior to interconnection pursuant to Minnesota Technical Requirements and this
Agreement.
7 Authorization Required Prior to Parallel Operation
7.1. As described in M-MIP Overview Process Section 9.5, the Area EPS Operator shall
use Reasonable Efforts to list applicable parallel operation requirements by
attaching the Minnesota Technical Requirements and/or including them in
Attachment 5 to this Agreement. Additionally, the Area EPS Operator shall notify the
Interconnection Customer of any changes to these requirements as soon as they are
known. Pursuant to the M-MIP Overview Process Section 8.5, the Interconnection
Customer shall not operate its Distributed Energy Resource in parallel with the Area
EPS Operator's Distribution System without prior written authorization of the Area
EPS Operator.
8 Right of Access
8.1. Upon reasonable notice, the Area EPS Operator may send a qualified person to the
premises of the Interconnection Customer at or immediately before the time the
Distributed Energy Resource first produces energy to inspect the interconnection,
and observe the commissioning of the Distributed Energy Resource (including any
required testing), startup, and operation for a period of up to three (3) Business
Days after initial start-up of the unit. In addition, the Interconnection Customer shall
notify the Area EPS Operator at least five (5) Business Days prior to conducting any
on-site verification testing of the Distributed Energy Resource.
8.2. Following the initial inspection process described above, at reasonable hours, and
upon reasonable notice, or at any time without notice in the event of an emergency
or hazardous condition, the Area EPS Operator shall have access to the
Interconnection Customer's premises for any reasonable purpose in connection with
the performance of the obligations imposed on it by this Agreement or if necessary
to meet its legal obligation to provide service to its customers.
8.3. Each Party shall be responsible for its costs associated with the interconnection of
the DER system as outlined in M-MIP Overview Process Section 9.3 and the
Minnesota Technical Requirements.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
9 Effective Date
9.1 This Agreement shall become effective upon execution by the Parties.
10 Term of Agreement
10.1. This Agreement shall become effective on the Effective Date and shall remain in
effect from the Effective Date unless terminated earlier in accordance with Section
11 of this Agreement.
11 Termination
11.1. No termination shall become effective until the Parties have complied with all
Applicable Laws and Regulations applicable to such termination.
11.2. The Interconnection Customer may terminate this Agreement at any time by giving
the Area EPS Operator twenty (20) Business Days written notice.
11.3. The Area EPS Operator may terminate this Agreement if the listed electric
generating facilities are not interconnected to the Area EPS Operator's distribution
system within thirty-six (36) months of this Agreement signed by the Parties. The
Parties may choose to delay termination by mutual agreement.
11.4. Either Party may terminate this Agreement after Default pursuant to Section 3.
11.5. Upon termination of this Agreement, the Distributed Energy Resource will be
disconnected from the Area EPS Operator's Distribution System. All costs required to
effectuate such disconnection shall be borne by the terminating Party, unless such
termination resulted from the non-terminating Party's Default of this Agreement or
such non-terminating Party otherwise is responsible for these costs under this
Agreement.
11.6. The termination of this Agreement shall not relieve either Party of its liabilities and
obligations, owed or continuing at the time of the termination.
11.7. The provisions of this article shall survive termination or expiration of this
Agreement.
12 Temporary Disconnection
12.1.Temporary disconnection shall continue only for so long as reasonably necessary
under Good Utility Practice.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
12.2. Emergency Conditions. Under emergency conditions, the Area EPS Operator may
immediately suspend interconnection service and temporarily disconnect the
Distributed Energy Resource. The Area EPS Operator shall use Reasonable Efforts to
notify the Interconnection Customer promptly when it becomes aware of an
Emergency Condition that may reasonably be expected to affect the Interconnection
Customer's operation of the Distributed Energy Resource.The Interconnection
Customer shall use Reasonable Efforts to notify the Area EPS Operator promptly
when it becomes aware of an Emergency Condition that may reasonably be expected
to affect the Area EPS Operator's Distribution System or any Affected Systems.To the
extent information is known, the notification shall describe the Emergency Condition,
the extent of the damage or deficiency, the expected effect on the operation of both
Parties' facilities and operations, its anticipated duration, and the necessary
corrective action.
12.3.Temporary Interruption.The Area EPS Operator may interrupt interconnection
service or curtail the output of the Distributed Energy Resource and temporarily
disconnect the Distributed Energy Resource from the Area EPS Operator's
Distribution System when necessary for routine maintenance, construction, or repairs
on the Area EPS Operator's Distribution System. The Area EPS Operator shall use
Reasonable Efforts to provide the Interconnection Customer with three (3) Business
Days' notice prior to such interruption. The Area EPS Operator shall use Reasonable
Efforts to coordinate such reduction or temporary disconnection with the
Interconnection Customer.
12.4. Forced Outage. During any forced outage, the Area EPS Operator may suspend
interconnection service to effect immediate repairs on the Area EPS Operator's
Distribution System.The Area EPS Operator shall use Reasonable Efforts to provide
the Interconnection Customer with prior notice. If prior notice is not given, the Area
EPS Operator shall, upon request, provide the Interconnection Customer written
documentation after the fact explaining the circumstances of the disconnection.
12.5. Adverse Operating Effects. The Area EPS Operator shall notify the Interconnection
Customer as soon as practicable if, based on Good Utility Practice, operation of the
Distributed Energy Resource may cause disruption or deterioration of service to other
customers served from the same electric system, or if operating the Distributed
Energy Resource could cause damage to the Area EPS Operator's Distribution System
or Affected Systems. Supporting documentation used to reach the decision to
disconnect shall be provided to the Interconnection Customer upon request. If, after
notice, the Interconnection Customer fails to remedy the adverse operating effect
within a reasonable time, the Area EPS Operator may disconnect the Distributed
Energy Resource. The Area EPS Operator shall provide the Interconnection Customer
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
with five Business Day notice of such disconnection, unless the provisions of Section
12.2 apply.
12.6. Modification of the Distributed Energy Resource. The Interconnection Customer must
receive written authorization from the Area EPS Operator before making any change
to the Distributed Energy Resource that may have a material impact on the safety or
reliability of the Distribution System. Such authorization shall not be unreasonably
withheld if the modification is not a Material Modification. Material Modifications,
including an increase Nameplate Rating or capacity, may require the Interconnection
Customer to submit a new Interconnection Application as described in the M-MIP
Overview Process Section 7. If the Interconnection Customer makes such
modification without the Area EPS Operator's prior written authorization, the latter
shall have the right to temporarily disconnect the Distributed Energy Resource.
12.7. Reconnection. The Parties shall cooperate with each other to restore the Distributed
Energy Resource, Interconnection Facilities, and the Area EPS Operator's Distribution
System to their normal operating state as soon as reasonably practicable following a
temporary disconnection.
12.8.Treatment Similar to Other Retail Customers. If the Interconnection Customer
receives retail electrical service at the same site as the Distributed Energy Resource, it
may also be disconnected consistent with the rules and practices for disconnecting
other retail electrical customer.
12.9. Disconnection for Default. If the Interconnection Customer is in Default of this
Agreement, it may be disconnected after a sixty (60) day written notice is provided
and the Default is not cured during this sixty (60) day notice. This provision does not
apply to disconnection based on Sections 12.2, 12.3, 12.4 or 12.5 of this Agreement.
13 Cost Responsibility for Interconnection Facilities and Distribution
Upgrades
13.1 Interconnection Facilities.The Interconnection Customer shall pay for the cost of the
Interconnection Facilities itemized in Attachment 2 of this Agreement. The Area EPS
Operator shall provide a good faith estimate cost, including overheads, for the
purchase and construction of its Interconnection Facilities and provide a detailed
itemization of such costs. Costs associated with Interconnection Facilities may be
shared with other entities that may benefit from such facilities by agreement of the
Interconnection Customer, such other entities, and the Area EPS Operator.
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13.2 The Interconnection Customer shall be responsible for its share of all reasonable
expenses, including overheads, associated with (1) owning, operating, maintaining,
repairing, and replacing its own Interconnection Facilities, and (2) operating,
maintaining, repairing, and replacing the Area EPS Operator's Interconnection
Facilities.
13.3 Distribution Upgrades. The Area EPS Operator shall design, procure, construct, install,
and own the Distribution Upgrades described in Attachment 6 of this Agreement. The
Area EPS Operator shall provide a good faith estimate cost, including overheads, for
the purchase and construction of the Distribution Upgrades and provide a detailed
itemization of such costs. If the Area EPS Operator and the Interconnection Customer
agree, the Interconnection Customer may construct Distribution Upgrades that are
located on land owned by the Interconnection Customer. The actual cost of the
Distribution Upgrades, including overheads, shall be directly assigned to the
Interconnection Customer.
14 Cost Responsibility for Network Upgrades
14.1. Applicability. No portion of Section 14 shall apply unless the interconnection of the
Distributed Energy Resource requires Network Upgrades.
14.2. Network Upgrades. The Area EPS Operator or the Transmission Owner shall design,
procure, construct, install, and own the Network Upgrades described in Attachment 6
of this Agreement.The Area EPS Operator shall provide a good faith estimate cost,
including overheads, for the purchase and construction of the Network Upgrades and
provide a detailed itemization of such costs. If the Area EPS Operator and the
Interconnection Customer agree, the Interconnection Customer may construct
Network Upgrades that are located on land owned by the Interconnection Customer.
Unless the Area EPS Operator elects to pay for Network Upgrades, the actual cost of
the Network Upgrades, including overheads, shall be borne initially by the
Interconnection Customer.
14.3. Repayment of Amounts Advanced for Network Upgrades. The Interconnection
Customer shall be entitled to a cash repayment, equal to the total amount paid to the
Area EPS Operator and Affected System operator, if any, for Network Upgrades,
including any tax gross-up or other tax-related payments associated with the
Network Upgrades, and not otherwise refunded to the Interconnection Customer, to
be paid to the Interconnection Customer on a dollar-for-dollar basis for the non-
usage sensitive portion of transmission charges, as payments are made under the
Area EPS Operator's Tariff and Affected System's Tariff for transmission services with
respect to the Distributed Energy Resource. Any repayment shall include interest
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calculated in accordance with the methodology set forth in Federal Energy Regulatory
Commission's (FERC's) regulations at 18 C.F.R. § 35.19a(a)(2)(iii) from the date of any
payment for Network Upgrades through the date on which the Interconnection
Customer receives a repayment of such payment pursuant to this subparagraph.The
Interconnection Customer may assign such repayment rights to any person.
14.4. Notwithstanding the foregoing, the Interconnection Customer, the Area EPS
Operator, and any applicable Affected System operators may adopt any alternative
payment schedule that is mutually agreeable so long as the Area EPS Operator and
said Affected System operators take one of the following actions no later than five
years from the Commercial Operation Date: (1) return to the Interconnection
Customer any amounts advanced for Network Upgrades not previously repaid, or (2)
declare in writing that the Area EPS Operator or any applicable Affected System
operators will continue to provide payments to the Interconnection Customer on a
dollar-for-dollar basis for the non-usage sensitive portion of transmission charges, or
develop an alternative schedule that is mutually agreeable and provides for the
return of all amounts advanced for Network Upgrades not previously repaid;
however, full reimbursement shall not extend beyond 20 years from the commercial
operation date.
14.5. If the Distributed Energy Resource fails to achieve commercial operation, but it or
another Distributed Energy Resource is later constructed and requires use of the
Network Upgrades, the Area EPS Operator and Affected System operator shall at that
time reimburse the Interconnection Customer for the amounts advanced for the
Network Upgrades. Before any such reimbursement can occur, the Interconnection
Customer, or the entity that ultimately constructs the Distributed Energy Resource, if
different, is responsible for identifying the entity to which reimbursement must be
made.
14.6. Special Provisions for Affected Systems. Unless the Area EPS Operator provides,
under this Agreement, for the repayment of amounts advanced to any applicable
Affected System operators for Network Upgrades, the Interconnection Customer and
Affected System operator shall enter into an agreement that provides for such
repayment.The agreement shall specify the terms governing payments to be made
by the Interconnection Customer to Affected System operator as well as the
repayment by Affected System Operator.
14.7. Rights Under Other Agreements. Notwithstanding any other provision of this
Agreement, nothing herein shall be construed as relinquishing or foreclosing any
rights, including but not limited to firm transmission rights, capacity rights,
transmission congestion rights, or transmission credits, that the Interconnection
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Customer shall be entitled to, now or in the future, under any other agreement or
tariff as a result of, or otherwise associated with, the transmission capacity, if any,
created by the Network Upgrades, including the right to obtain cash reimbursements
or transmission credits for transmission service that is not associated with the
Distributed Energy Resource.
15 Billing, Payment, Milestones, and Financial Security
15.1. Billing and Payment Procedures and Final Accounting. The Area EPS Operator shall bill
the Interconnection Customer for the design, engineering, construction, and
procurement costs of Interconnection Facilities and Upgrades contemplated by this
Agreement, and the Interconnection Customer shall pay each bill, pursuant to the M-
MIP Interconnection Process documents, or as otherwise agreed to by the Parties.
15.2. Within 80 Business Days (approximately 4 calendar months) of completing the
construction and installation of the Area EPS Operator's Interconnection Facilities
and/or Upgrades described in the Attachments to this Agreement, the Area EPS
Operator shall provide the Interconnection Customer with a final accounting report,
as described in the M-MIP Fast Track Process Section 9.4.3 and the Study Process
Section 11.4.3.
15.3. Milestones. Pursuant to the M-MIP Fast Track Process Section 9.1 and the Study
Process Section 11.1, the Parties shall agree on milestones for which each Party is
responsible and list them in Attachment 4 of this Agreement.
15.4. Financial Security Arrangements. Pursuant to the M-MIP Fast Track Process Section
9.5 and the Study Process Section 11.5, the Interconnection Customer shall provide
the Area EPS Operator, at the Interconnection Customer's option, a guarantee, letter
of credit or other form of security that is reasonably acceptable to the Area EPS
Operator and is consistent with the Minnesota Uniform Commercial Code. Such
security for payment shall be in an amount sufficient to cover the costs for
constructing, designing, procuring, and installing the applicable portion of the Area
EPS Operator's Interconnection Facilities and Upgrades and shall be reduced on a
dollar-for-dollar basis for payments made to the Area EPS Operator under this
Agreement during its term. In addition:
15.4.1. The guarantee must be made by an entity that meets the creditworthiness
requirements of the Area EPS Operator, and contain terms and conditions
that guarantee payment of any amount that may be due from the
Interconnection Customer, up to an agreed-to maximum amount.
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15.4.2. The letter of credit must be issued by a financial institution or insurer
reasonably acceptable to the Area EPS Operator and must specify a
reasonable expiration not sooner than sixty (60) Business Days (three
calendar months) after the due date for the issuance of the final bill.
16 Assignment, Force Majeure, Consequential Damages, and Default
16.1. This Agreement may be assigned by either Party upon 15 Business Days prior written
notice and opportunity to object by the other Party; provided that:
16.1.1. Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit
rating and with the legal authority and operational ability to satisfy the
obligations of the assigning Party under this Agreement, provided that the
Interconnection Customer promptly notifies the Area EPS Operator of any
such assignment.
16.1.2. Interconnection Customer shall have the right to assign this Agreement,
without the consent of the Area EPS Operator, for collateral security
purposes to aid in providing financing for the Distributed Energy Resource,
provided that the Interconnection Customer will promptly notify the Area
EPS Operator of any such assignment.
16.1.3. Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's
obligations be enlarged, in whole or in part, by reason thereof. An assignee
is responsible for meeting the same financial, credit, and insurance
obligations as the Interconnection Customer. Where required, consent to
assignment will not be unreasonably withheld, conditioned or delayed.
17 Limitations of Liability
17.1. Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or
expense, including reasonable attorney's fees, relating to or arising from any act or
omission in its performance of this Agreement, shall be limited to the amount of
direct damage actually incurred. In no event shall either Party be liable to the other
Party for any indirect, special, consequential, or punitive damages, except as
authorized by this Agreement.
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18 Non-Warranty
18.1. The Area EPS Operator does not give any warranty, expressed or implied, as to the
adequacy, safety, or other characteristics of any structures, equipment, wires,
appliances or devices owned, installed or maintained by the Interconnection
Customer, including without limitation the Distributed Energy Resource and any
structures, equipment, wires, appliances or devices not owned, operated or
maintained by the Area EPS Operator.
19 Indemnity
19.1. This provision protects each Party from liability incurred to third parties as a result of
carrying out the provisions of this Agreement. Liability under this provision is exempt
from the general limitations on liability found in Section 17.
19.2. The Parties shall at all times indemnify, defend, and hold the other Party harmless
from, any and all damages, losses, claims, including claims and actions relating to
injury to or death of any person or damage to property, demand, suits, recoveries,
costs and expenses, court costs, attorney fees, and all other obligations by or to third
parties, arising out of or resulting from the other Party's action or failure to meet its
obligations under this Agreement on behalf of the indemnifying Party, except in cases
of gross negligence or intentional wrongdoing by the indemnified Party.
19.3. If an indemnified person is entitled to indemnification under this article as a result of
a claim by a third party, and the indemnifying Party fails, after notice and reasonable
opportunity to proceed under this article, to assume the defense of such claim, such
indemnified person may at the expense of the indemnifying Party contest, settle or
consent to the entry of any judgment with respect to, or pay in full, such claim.
19.4. If an indemnifying party is obligated to indemnify and hold any indemnified person
harmless under this article, the amount owing to the indemnified person shall be the
amount of such indemnified person's actual loss, net of any insurance or other
recovery.
19.5. Promptly after receipt by an indemnified person of any claim or notice of the
commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified
person shall notify the indemnifying party of such fact. Any failure of or delay in such
notification shall not affect a Party's indemnification obligation unless such failure or
delay is materially prejudicial to the indemnifying party.
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19.6. This indemnification obligation shall apply notwithstanding any negligent or
intentional acts, errors or omissions of the Indemnified Party, but the Indemnifying
Party's liability to indemnify the Indemnifying Party shall be reduced in proportion to
the percentage by which the Indemnified Party's negligent or intentional acts, errors
or omissions caused damaged.
19.7. Neither Party shall be indemnified for its damages resulting from its sole negligence,
intentional acts or willful misconduct.These indemnity provisions shall not be
construed to relieve any insurer of its obligation to pay claims consistent with the
provisions of a valid insurance policy.
20 Consequential Damages
20.1. Other than as expressly provided for in this Agreement, neither Party shall be liable
under any provision of this Agreement for any losses, damages, costs or expenses for
any special, indirect, incidental, consequential, or punitive damages, including but not
limited to loss of profit or revenue, loss of the use of equipment, cost of capital, cost
of temporary equipment or services, whether based in whole or in part in contract, in
tort, including negligence, strict liability, or any other theory of liability; provided,
however, that damages for which a Party may be liable to the other Party under
another agreement will not be considered to be special, indirect, incidental, or
consequential damages hereunder.
21 Force Majeure
21.1. If a Force Majeure Event prevents a Party from fulfilling any obligations under this
Agreement, the Party affected by the Force Majeure Event (Affected Party) shall
promptly notify the other Party, either in writing or via the telephone, of the
existence of the Force Majeure Event.The notification must specify in reasonable
detail the circumstances of the Force Majeure Event, its expected duration, and the
steps that the Affected Party is taking to mitigate the effects of the event on its
performance.The Affected Party shall keep the other Party informed on a continuing
basis of developments relating to the Force Majeure Event until the event ends.The
Affected Party will be entitled to suspend or modify its performance of obligations
under this Agreement (other than the obligation to make payments) only to the
extent that the effect of the Force Majeure Event cannot be mitigated by the use of
Reasonable Efforts.The Affected Party will use Reasonable Efforts to resume its
performance as soon as possible.
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22 Default
22.1. No Default shall exist where such failure to discharge an obligation (other than the
payment of money) is the result of a Force Majeure Event as defined in this
Agreement or the result of an act or omission of the other Party. Upon a Default, the
non-defaulting Party shall give written notice of such Default to the defaulting Party.
Except as provided in Section 21, the defaulting Party shall have sixty (60) calendar
days from receipt of the Default notice within which to cure such Default; provided
however, if such Default is not capable of cure within sixty (60) calendar days, the
defaulting Party shall commence such cure within twenty (20) calendar days after
notice and continuously and diligently complete such cure within six (6) months from
receipt of the Default notice; and, if cured within such time, the Default specified in
such notice shall cease to exist.
22.2. If a Default is not cured as provided in this article, or if a Default is not capable of
being cured within the period provided for herein, the non-defaulting Party shall have
the right to terminate this Agreement by written notice at any time until cure occurs,
and be relieved of any further obligation hereunder and, whether or not that Party
terminates this Agreement, to recover from the defaulting Party all amounts due
hereunder, plus all other damages and remedies to which it is entitled at law or in
equity.The provisions of this article will survive termination of this Agreement.
23 Insurance
23.1. An Area EPS Operator may only require an Interconnection Customer to purchase
insurance covering damages pursuant to the applicable M-MIP process document in
which the distributed energy resource falls under.
23.2. The Area EPS Operator agrees to maintain general liability insurance or self-insurance
consistent with the Area EPS Operator's commercial practice. Such insurance or self-
insurance shall not exclude coverage for the Area EPS Operator's liabilities
undertaken pursuant to this Agreement.
23.3. The Parties further agree to notify each other whenever an accident or incident
occurs resulting in any injuries or damages that are included within the scope of
coverage of such insurance, whether or not such coverage is sought.
23.4. Failure of the Interconnection Customer or Area EPS Operator to enforce the
minimum levels of insurance does not relieve the Interconnection Customer from
maintaining such levels of insurance or relieve the Interconnection Customer of any
liability.
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24 Confidentiality
24.1. Confidential Information shall mean any confidential and/or proprietary information
provided by one Party to the other Party that is clearly marked or otherwise
designated "Confidential." For purposes of this Agreement, design, operating
specifications, and metering data provided by the Interconnection Customer may be
deemed Confidential Information regardless of whether it is clearly marked or
otherwise designated as such. If requested by either Party, the other Party shall
provide in writing the basis for asserting that the information warrants confidential
treatment. Parties providing a Governmental Authority trade secret, privileged or
otherwise not public data under Minnesota Government Data Privacy Act, Minnesota
Statutes Chapter 13, must provide information consistent with the Commission's
September 1, 1999 Revised Procedures for Handling Trade Secret and Privileged Data.
24.2. Confidential Information does not include information previously in the public
domain with proper authorization, required to be publicly submitted or divulged by
Governmental Authorities (after notice to the other Party and after exhausting any
opportunity to oppose such publication or release), or necessary to be publicly
divulged in an action to enforce this Agreement. Each Party receiving Confidential
Information shall hold such information in confidence and shall not disclose it to any
third party nor to the public without the prior written authorization from the Party
providing that information, except to fulfill obligations under this Agreement, or to
fulfill legal or regulatory requirements that could not otherwise be fulfilled by not
making the information public.
24.3. Each Party shall hold in confidence and shall not disclose Confidential Information, to
any person (except employees, officers, representatives and agents, who agree to be
bound by this section). Confidential Information shall be clearly marked as such on
each page or otherwise affirmatively identified. If a court, government agency or
entity with the right, power, and authority to do so, requests or requires either Party,
by subpoena, oral disposition, interrogatories, requests for production of documents,
administrative order, or otherwise, to disclose Confidential Information, that Party
shall provide the other Party with prompt notice of such request(s) or
requirements(s) so that the other Party may seek an appropriate protective order or
waive compliance with the terms of this Agreement. In the absence of a protective
order or waiver the Party shall disclose such confidential information which, in the
opinion of its counsel, the party is legally compelled to disclose. Each Party will use
reasonable efforts to obtain reliable assurance that confidential treatment will be
accorded any confidential information so furnished.
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24.4. Critical infrastructure information or information that is deemed or otherwise
designated by a Party as Critical Energy/Electric Infrastructure Information (CEII)
pursuant to FERC regulation 18 C.F.R. §388.133, as may be amended from time to
time, may be subject to further protections for disclosure as required by FERC or
FERC regulations or orders and the disclosing Party's CEII policies.
24.5. Each Party shall employ at least the same standard of care to protect Confidential
Information obtained from the other Party as it employs to protect its own
Confidential Information.
24.6. Each Party is entitled to equitable relief, by injunction or otherwise, to enforce its
rights under this provision to prevent the release of Confidential Information without
bond or proof of damages, and may seek other remedies available at law or in equity
for breach of this provision.
25 Disputes
The Parties agree in a good faith effort to attempt to resolve all disputes arising out of
the interconnection process and associated study and Interconnection Agreements.
The Parties agree to follow the established dispute resolution policy adopted by the
Area EPS Operator.
26 Taxes
26.1. The Parties agree to follow all applicable tax laws and regulations, consistent with
Internal Revenue Service and any other relevant local, state and federal
requirements.
26.2. Each Party shall cooperate with the other to maintain the other Party's tax status. It is
incumbent on the Party seeking to maintain its tax status to provide formal written
notice to the other Party detailing what exact cooperation it is seeking from the other
Party well prior to any deadlines by which any such action would need to be taken.
Nothing in this Agreement is intended to adversely affect, if applicable, the Area EPS
Operator's tax-exempt status with respect to the issuance of bonds including, but not
limited to, local furnishing bonds.
27 Miscellaneous
27.1. Governing Law, Regulatory Authority, and Rules.The validity, interpretation and
enforcement of this Agreement and each of its provisions shall be governed by the
Area EPS Operator's board of directors and the laws of the state of Minnesota,
without regard to its conflicts of law principles. This Agreement is subject to all
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Applicable Laws and Regulations. Each Party expressly reserves the right to seek
changes in, appeal, or otherwise contest any laws, orders, or regulations of a
Governmental Authority.
27.2. Amendment.The Parties may amend this Agreement by a written instrument duly
executed by both Parties, or under Section 27.12 of this Agreement.
27.3. No Third-Party Beneficiaries. This Agreement is not intended to and does not create
rights, remedies, or benefits of any character whatsoever in favor of any persons,
corporations, associations, or entities other than the Parties, and the obligations
herein assumed are solely for the use and benefit of the Parties, their successors in
interest and where permitted, their assigns.
27.4. Waiver.The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement will not be considered a waiver of
any obligation, right, or duty of, or imposed upon, such Party. Any waiver at any time
by either Party of its rights with respect to this Agreement shall not be deemed a
continuing waiver or a waiver with respect to any other failure to comply with any
other obligation, right, duty of this Agreement.Termination or default of this
Agreement for any reason by Interconnection Customer shall not constitute a waiver
of the Interconnection Customer's legal rights to obtain an interconnection from the
Area EPS Operator. Any waiver of this Agreement shall, if requested, be provided in
writing.
27.5. Entire Agreement.This Agreement, including all Attachments, constitutes the entire
agreement between the Parties with reference to the subject matter hereof, and
supersedes all prior and contemporaneous understandings or agreements, oral or
written, between the Parties with respect to the subject matter of this Agreement.
There are no other agreements, representations, warranties, or covenants which
constitute any part of the consideration for, or any condition to, either Party's
compliance with its obligations under this Agreement.This Agreement can only be
amended or modified in writing signed by both Parties.
27.6. Multiple Counterparts. This Agreement may be executed in two or more
counterparts, each of which is deemed an original but all constitute one and the
same instrument. Electronic signatures are acceptable if the Area EPS Operator has
made such a determination pursuant to M-MIP Overview Process Section 4.1.
27.7. No Partnership.This Agreement shall not be interpreted or construed to create an
association,joint venture, agency relationship, or partnership between the Parties or
to impose any partnership obligation or partnership liability upon either Party.
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Neither Party shall have any right, power or authority to enter into any agreement or
undertaking for, or act on behalf of, or to act as or be an agent or representative of,
or to otherwise bind, the other Party.
27.8. Severability. If any provision or portion of this Agreement shall for any reason be held
or adjudged to be invalid or illegal or unenforceable by any court of competent
jurisdiction or other Governmental Authority, (1) such portion or provision shall be
deemed separate and independent, (2) the Parties shall negotiate in good faith to
restore insofar as practicable the benefits to each Party that were affected by such
ruling, and (3) the remainder of this Agreement shall remain in full force and effect.
27.9. Security Arrangements. Infrastructure security of electric system equipment and
operations and control hardware and software is essential to ensure day-to-day
reliability and operational security. All public utilities are expected to meet basic
standards for system infrastructure and operational security, including physical,
operational, and cyber-security practices.
27.10.Environmental Releases. Each Party shall notify the other Party, first orally and then
in writing, of the release of any hazardous substances, any asbestos or lead
abatement activities, or any type of remediation activities related to the Distributed
Energy Resource or the Interconnection Facilities, each of which may reasonably be
expected to affect the other Party.The notifying Party shall (1) provide the notice as
soon as practicable, provided such Party makes a good faith effort to provide the
notice no later than 24 hours after such Party becomes aware of the occurrence, and
(2) promptly furnish to the other Party copies of any publicly available reports filed
with any governmental authorities addressing such events.
27.11.Subcontractors. Nothing in this Agreement shall prevent a Party from utilizing the
services of any subcontractor as it deems appropriate to perform its obligations
under this Agreement. Each Party shall require its subcontractors to comply with all
applicable terms and conditions of this Agreement in providing such services and
each Party shall remain primarily liable to the other Party for the performance of
such subcontractor.
27.11.1. The creation of any subcontract relationship shall not relieve the hiring
Party of any of its obligations under this Agreement. The hiring Party shall
be fully responsible to the other Party for the acts or omissions of any
subcontractor the hiring Party hires as if no subcontract had been made.
In no event shall the Area EPS Operator be liable for the actions or
inactions of the Interconnection Customer or its subcontractors with
respect to obligations of the Interconnection Customer under this
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Agreement. Any applicable obligation imposed by this Agreement upon
the hiring Party shall be equally binding upon, and shall be construed as
having application to, any subcontractor of such Party.
27.11.2. The obligations under this article will not be limited in any way by any
limitation of subcontractor's insurance.
27.12.Inclusion of Area EPS Operator Tariff and Rules. The interconnection services
provided under this Agreement shall at all times be subject to the terms and
conditions set forth in the rate schedules and rules applicable to the electric service
provided by the Area EPS Operator, which rate schedules and rules are hereby
incorporated into this Agreement by this reference.
28 Notices
28.1. General. Unless otherwise provided in this Agreement, any written notice, demand,
or request required or authorized in connection with this Agreement ("Notice") shall
be deemed properly given if delivered in person, delivered by recognized national
currier service, or sent by first class mail, postage prepaid, to the person specified as
follows:
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Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.2. Billing and Payment. Billing and payments shall be sent to the addresses set out
below:
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
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Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.3. Alternative Forms of Notice. Any notice or request required or permitted to be given
by either Party to the other and not required by this Agreement to be given in writing
may be so given by telephone or e mail to the telephone numbers and e-mail
addresses set out below:
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
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28.4. Designated Operating Representative. The Parties may also designate operating
representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as
the point of contact with respect to operations and maintenance of the Party's
facilities.
Area EPS Operator Information
Area EPS Operator:
Attention:
Address:
Phone:
Email:
Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.5. Changes to Notification. Either Party may change this information by giving five
Business Days written notice to the other Party prior to the effective date of the
change.
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29 Signatures
IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
[Insert name of Area EPS Operator] [Insert name of Interconnection Customer]
Signed: Signed:
Name (Printed): Name (Printed):
Title: Title:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment I: Glossary of Terms
Affected System—Another Area EPS Operator's System, Transmission Owner's Transmission
System, or Transmission System connected generation which may be affected by the proposed
interconnection.
Applicant Agent—A person designated in writing by the Interconnection Customer to represent
or provide information to the Area EPS on the Interconnection Customer's behalf throughout
the interconnection process.
Area EPS—The electric power distribution system connected at the Point of Common Coupling.
Area EPS Operator—An entity that owns, controls, or operates the electric power distribution
systems that are used for the provision of electric service in Minnesota. For this Interconnection
Process the Area EPS Operator is Elk River Municipal Utilities.
Business Day—Monday through Friday, excluding Holidays as defined by Minn. Stat. §645.44,
Subdivision 5. Any communication to have been sent or received after 4:30 p.m. Central
Prevailing Time or on a Saturday, Sunday or holiday shall be considered to have been sent on
the next Business Day.
Certified Equipment—Certified equipment is equipment that has been tested by a national
recognized lab meeting a specific standard. For DER systems, UL 1741 listing is a common form
of DER inverter certification. Additional information is seen in the Certification Codes and
Standards document.
Confidential Information —Any confidential and/or proprietary information provided by one
Party to the other Party and is clearly marked or otherwise designated "Confidential." All
procedures, design, operating specifications, and metering data provided by the
Interconnection Customer may be deemed Confidential Information. See Overview Process
Section 12.1 for further information.
Distributed Energy Resource (DER)—A source of electric power that is not directly connected
to a bulk power system or central station service. DER includes both generators and energy
storage technologies capable of exporting active power to an EPS. An interconnection system or
a supplemental DER device that is necessary for compliance with this standard is part of a DER.
For the purpose of the Interconnection Process and interconnection agreements, the DER
includes the Customer's Interconnection Facilities but shall not include the Area EPS Operator's
Interconnection Facilities.
Distribution System—The Area EPS facilities which are not part of the Local EPS, Transmission
System or any generation system.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Distribution Upgrades—The additions, modifications, and upgrades to the Distribution System
at or beyond the Point of Common Coupling to facilitate interconnection of the DER and render
the distribution service necessary to affect the Interconnection Customer's connection to the
Distribution System. Distribution Upgrades do not include Interconnection Facilities.
Electric Power System (EPS) —The facilities that deliver electric power to a load.
Fast Track Process—The procedure as described in the Interconnection Process - Fast Track
Process for evaluating an Interconnection Application for a DER that meets the eligibility
requirements in the Overview Process Section 2.3.
Force Majeure Event—An act of God, labor disturbance, act of the public enemy, war,
insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or
equipment, an order, regulation or restriction imposed by governmental, military or lawfully
established civilian authorities, or another cause beyond a Party's control. A Force Majeure
Event does not include an act of negligence or intentional wrongdoing.
Good Utility Practice—Any of the practices, methods and acts engaged in or approved by a
significant portion of the electric industry during the relevant time period, or any of the
practices, methods and act which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish the desired
result at a reasonable cost consistent with good business practices, reliability, safety and
expedition. Good Utility Practice is not intended to be limited to the optimum practice, method,
or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts
generally accepted in the region.
Governmental Authority—Any federal, state, local or other governmental regulatory or
administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, or other governmental authority having
jurisdiction over the Parties, their respective facilities, or the respective services they provide,
and exercising or entitled to exercise any administrative, executive, police, or taxing authority
or power; provided, however, that such term does not include the Interconnection Customer,
the Area EPS Operator, or any Affiliate thereof.The utility's local governing body is the
authority governing interconnection requirements unless otherwise provided for in the
Minnesota Technical Requirements.
Interconnection Agreement—The terms and conditions between the Area EPS Operator and
Interconnection Customer(Parties). See Section 8 in the Overview ProcessError! Reference
source not found. for when the Uniform Contract or Interconnection Agreement applies.
Interconnection Application—The Interconnection Customer's request to interconnect a new
or modified, as described in Section 4 of the Overview Process, DER. See Simplified Application
Form and Interconnection Application Form.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Interconnection Customer—The person or entity, including the Area EPS Operator, whom will
be the owner of the DER that proposes to interconnect a DER(s) with the Area EPS Operator's
Distribution System.The Interconnection Customer is responsible for ensuring the DER(s) is
designed, operated and maintained in compliance with the Minnesota Technical Requirements.
Interconnection Facilities—The Area EPS Operator's Interconnection Facilities and the
Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities
include all facilities and equipment between the DER and the Point of Common Coupling,
including any modification, additions or upgrades that are necessary to physically and
electrically interconnect the DER to the Area EPS Operator's System. Some examples of
Customer Interconnection Facilities include: supplemental DER devices, inverters, and
associated wiring and cables up to the Point of DER Connection. Some examples of Area EPS
Operator Interconnection Facilities include sole use facilities; such as, line extensions, controls,
relays, switches, breakers, transformers and shall not include Distribution Upgrades or Network
Upgrades.
Interconnection Process—The Area EPS Operator's interconnection standards in this
document.
Material Modification—A modification to machine data, equipment configuration or to the
interconnection site of the DER at any time after receiving notification by the Area EPS
Operator of a complete Interconnection Application that has a material impact on the cost,
timing, or design of any Interconnection Facilities or Upgrades, or a material impact on the cost,
timing or design of any Interconnection Application with a later Queue Position or the safety or
reliability of the Area EPS.1
MN Technical Requirements—The term including all of the DER technical interconnection
requirement documents for the state of Minnesota; including Attachment 2 Distributed
Generation Interconnection Requirements established in the Commission's September 28, 2004
Order in E-999/CI-01-1023) until superseded and upon Commission approval of updated
1 A Material Modification shall include,but may not be limited to,a modification from the approved
Interconnection Application that: (1)changes the physical location of the point of common coupling;such that it is
likely to have an impact on technical review;(2)increases the nameplate rating or output characteristics of the
Distributed Energy Resource;(3)changes or replaces generating equipment,such as generator(s), inverter(s),
transformers,relaying,controls,etc.,and substitutes equipment that is not like-kind substitution in certification,size,
ratings,impedances,efficiencies or capabilities of the equipment;(4)changes transformer connection(s)or
grounding;and/or(5)changes to a certified inverter with different specifications or different inverter control settings
or configuration.A Material Modification shall not include a modification from the approved Interconnection
Application that: (1)changes the ownership of a Distributed Energy Resource; (2)changes the address of the
Distributed Energy Resource,so long as the physical point of common coupling remains the same;(3)changes or
replaces generating equipment such as generator(s), inverter(s),solar panel(s),transformers,relaying,controls,etc.
and substitutes equipment that is a like-kind substitution in certification,size,ratings, impedances,efficiencies or
capabilities of the equipment;and/or(4)increases the DC/AC ratio but does not increase the maximum AC output
capability of the Distributed Energy Resource in a way that is likely to have an impact on technical review.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Minnesota DER Technical Interconnection and Interoperability Requirements in E-999/CI-16-
521 (anticipated July 2019.)
Nameplate Rating- nominal voltage (V), current (A), maximum active power (kWac), apparent
power (kVA), and reactive power (kVar) at which a DER is capable of sustained operation. For a
Local EPS with multiple DER units, the aggregate nameplate rating is equal to the sum of all
DERs nameplate rating in the Local EPS. For purposes of the Attachment V in the
Interconnection Agreement, the DER system's capacity may, with the Area EPS's agreement, be
limited thought use of control systems, power relays or similar device settings or adjustments
as identified in IEEE 1547. The nameplate ratings referenced in the Interconnection Process are
alternating current nameplate DER ratings at the Point of DER Coupling.
Network Upgrades—Additions, modifications, and upgrades to the Transmission System
required at or beyond the point at which the DER interconnects with the Area EPS Operator's
System to accommodate the interconnection with the DER to the Area EPS Operator's System.
Network Upgrades do not include Distribution Upgrades.
Operating Requirements—Any operating and technical requirements that may be applicable
due to the Transmission Provider's technical requirements or Minnesota Technical
Requirements, including those set forth in the Interconnection Agreement.
Party or Parties—The Area EPS Operator and the Interconnection Customer.
Point of Common Coupling(PCC)—The point where the Interconnection Facilities connect with
the Area EPS Operator's Distribution System. See figure 1. Equivalent, in most cases, to "service
point" as specified by the Area EPS Operator and described in the National Electrical Code and
the National Electrical Safety Code.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Area Electric Power System(Area EPS)
Point of Common L
������ � r PCC PCC
PoC PoC PoC
PoC
Distributed Distributed ; .N. SupplementalEnergy Energy DER Devfce
Resource Resource
ll
179
(DER)unit (DER)unlL
Local EPS 1 Local LPS 3 Distributed
` Energy
_� Pcc--,1*. Resource
PCC
(DER)unit
11111111111111111111 �
Pot —yLie
Point of DER --►---►
connection
(PoC) —
Distributed Distributed
Energy Supp{emental Energy Distributed
Resource GERDeatce Resource Energy
(DER)unit (DER)unit Resource
(DER)unit
local EPS 2 Local EPS 4 Local EPS 5
Figure 1: Point of Common Coupling and Point of DER Connection
(Source: IEEE 1547)
Point of DER Connection (PoC)—When identified as the Reference Point of Applicability, the
point where an individual DER is electrically connected in a Local EPS and meets the
requirements of this standard exclusive of any load present in the respective part of the Local
EPS (e.g. terminals of the inverter when no supplemental DER device is required.) For DER
unit(s)that are not self-sufficient to meet the requirements without a supplemental DER
device(s), the Point of DER Connection is the point where the requirements of this standard are
met by DER in conjunction with a supplemental DER device(s) exclusive of any load present in
the respective part of the Local EPS.
Queue Position—The order of a valid Interconnection Application, relative to all other pending
valid Interconnection Applications, that is established based upon the date- and time- of receipt
of the complete Interconnection Application as described in Section 4.7 of the Overview
ProcessError! Reference source not found..
Reasonable Efforts—With respect to an action required to be attempted or taken by a Party
under these procedures, efforts that are timely and consistent with Good Utility Practice and
are otherwise substantially equivalent to those a Party would use to protect its own interests.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Reference Point of Applicability—The location, either the Point of Common Coupling or the
Point of DER Connection, where the interconnection and interoperability performance
requirements specified in IEEE 1547 apply. With mutual agreement, the Area EPS Operator and
Customer may determine a point between the Point of Common Coupling and Point of DER
Connection. See Minnesota Technical Requirements for more information.
Simplified Process—The procedure for evaluating an Interconnection Application for a certified
inverter-based DER no larger than 20 kW that uses the screens described in the Interconnection
Process—Simplified Process document.The Simplified Process includes simplified procedures.
Study Process—The procedure for evaluating an Interconnection Application that includes the
scoping meeting, system impact study, and facilities study.
Transmission Owner—The entity that owns, leases or otherwise possesses an interest in the
portion of the Transmission System relevant to the Interconnection.
Transmission Provider—The entity (or its designated agent) that owns, leases, controls, or
operates transmission facilities used for the transmission of electricity. The term Transmission
Provider includes the Transmission Owner when the Transmission Owner is separate from the
Transmission Provider. The Transmission Provider may include the Independent System
Operator or Regional Transmission Operator.
Transmission System—The facilities owned, leased, controlled or operated by the Transmission
Provider or the Transmission Owner that are used to provide transmission service. See the
Commission's July 26, 2000 Order Adopting Boundary Guidelines for Distinguishing
Transmission from Generation and Distribution Assets in Docket No. E-999/CI-99-1261.
Uniform Contract—the Area EPS Operator's Agreement for Cogeneration and Small Power
Production Facilities (Uniform Contract) that may be applied to all qualifying new and existing
interconnections between the Area EPS Operator and an DER system having capacity less than
40 kilowatts.
Upgrades—The required additions and modifications to the Area EPS Operator's Transmission
or Distribution System at or beyond the Point of Interconnection. Upgrades may be Network
Upgrades or Distribution Upgrades. Upgrades do not include Interconnection Facilities.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment II: Description and Costs of the Distributed Energy
Resource, Interconnection Facilities, and Metering Equipment
Equipment, including the Distribution Energy Resource, Interconnection Facilities, and metering
equipment shall be itemized and identified as being owned by the Interconnection Customer or
the Area EPS Operator.The Area EPS Operator will provide a good faith estimate itemized cost,
including administrative overheads, of its Interconnection Facilities and metering equipment,
and a good faith estimate itemized cost of the annual operation and maintenance expenses
associated with the Interconnection Facilities and metering equipment.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment Ill: One-line Diagram Depicting the Distributed Energy
Resource, Interconnection Facilities, and Metering Equipment, and
Upgrades
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment IV: Milestones
The Milestones in line (1) below may be a calendar date. All other dates in this Attachment IV
may be the number of Business Days from the calendar date in line (1) or from the completion
of a different Milestone described in a specific number line. Similarly, the anticipated In-Service
Date may be based on the number of Business Days from the completion of a specified line
number.
In-Service Date:
Critical milestones and responsibilities as agreed to by the Parties:
Milestone/Anticipated Date Responsible Party
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
Agreed to by:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Area EPS Operator Date
Transmission Owner
(If Applicable) Date
Interconnection
Customer Date
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment V: Additional Operating and Maintenance Requirements
for the Area EPS Operator's Distribution System and Affected Systems
Need to Support the Interconnection Customer's Needs
The Area EPS Operator shall also provide requirements that must be met by the
Interconnection Customer prior to initiating parallel operation with the Area EPS Operator's
Distribution System. Additional operating and maintenance requirements for an Affected
System needed to support the Interconnection Customer's needs may be addressed in a
separate agreement described in Section 14.6.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment VI: Area EPS Operator's Description of Distribution and
Network Upgrades and Good Faith Estimates of Upgrade Costs
The Area EPS Operator shall describe Distribution and Network Upgrades and provide an
itemized good faith estimate of the costs, including administrative overheads, of the Upgrade
and annual operations and maintenance expenses associated with such Upgrades.The Area EPS
Operator shall functionalize Upgrade costs and annual expenses as either transmission or
distribution related. Additional Distribution or Network Upgrades required for an Affected
System may be addressed in a separate agreement as described in Section 14.6.
Municipal Minnesota Interconnection Agreement_January 2019 36
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Attachment VII: Assignment of Interconnection Agreement
This is an Assignment of Interconnection Agreement ("Agreement").
There is an Interconnection Agreement, including any and all Attachments thereto including
any and all amendments ("Agreement") by and between
, a municipal utility existing under the laws of the State of
Minnesota, ("Area EPS Operator"), and ,
("Assignor") originally signed by the Area EPS Operator on for a
Distributed Energy Resource (DER) described as follows:
DER System Information
Type of DER System:
Capacity Rating of System (AC):
Limited Capacity Rating (AC):
Address of DER System:
The Assignor intends to convey its interest in the above-referenced DER to
("Assignee"), and the Assignor intends to assign the Agreement
to the Assignee.
Upon the execution of this Assignment by the Assignor, Assignee and the Area EPS Operator,
agree as follows:
1. Capitalized Terms. Capitalized terms used but not defined herein shall have the
meanings set forth in the Agreement.
2. Consent to Assignment.The Assignor hereby irrevocably assigns the Agreement in all
respects to the Assignee and the Assignee accepts the assignment thereof in all
respects.
3. Amendment to Agreement. The Area EPS Operator consents to this assignment and, as
assigned, the Agreement is hereby amended so that wherever the name of the Assignor
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
is used therein it shall mean the Assignee. It is further agreed that all terms and
conditions of the Agreement, as amended by this Assignment, shall remain in full force
and effect.
4. Payments by Area EPS Operator. Any and all payments made by Area EPS Operator
under the Agreement to either the Assignor or the Assignee shall be deemed to have
been made to both and shall discharge the Area EPS Operator from any further liability
with regard to said payment.
5. Financial Obligations of Assignor and Assignee. Any and all financial liability, including
but not limited to amounts due, from the Interconnection Customer to the Area EPS
Operator, occurring or accruing under the Agreement on or before the date of the
signature of the Area EPS Operator to this Assignment shall be deemed to be the
obligation of both the Assignor and Assignee, and the Area EPS Operator may recover
any such amounts jointly and severally from the Assignor and Assignee.
6. Contact information.The following information updates and replaces the designated
information as set forth on page 1 of the Agreement, and in Section 28.1, 28.2, 28.3 and
28.4 of the Agreement.
Page 1 Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.1 General Notices. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
28.2 Billing and Payment Notices. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.3 Alternative Forms of Notices. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
28.4 Designated Operating Representative. Interconnection Customer Information
Interconnection Customer:
Attention:
Address:
Phone:
Email:
7. Signatures. Facsimile or electronic signatures, or signatures to this Assignment sent
electronically, shall have the same effect as original signatures. Photocopies, or
electronically stored versions of this Assignment, shall have the same validity as the
original.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
The Area EPS Operator, Assignor, and Assignee have executed this Assignment as of the
dates as set forth below.
Assignor
[Insert legal name of Assignor]
Signed:
Name (Printed):
Title:
Date:
Assignee
[Insert legal name of Assignee]
Signed:
Name (Printed):
Title:
Date:
Area EPS Operator
[Insert legal name of Area EPS Operator]
Signed:
Name (Printed):
Title:
Date:
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Certification of Completion
The Interconnection Customer should complete the Distributed Energy Resource Certification of
Completion for a proposed DER interconnection in the Simplified Process Track. As a condition of
interconnection, a completed copy of this form must be returned to the Utility.
Distributed Energy Resource Information
Interconnection Customer:
DER Project Address:
City: State: Zip Code:
Application ID: Meter Number:
Is the DER system owner-installed? ❑ Yes El No (If no please completed
Installer Information)
Installer Information
Contact Name:
Name of Business:
Email: Phone:
Electrician Name License #
Electrical Permitting Authority
The DER has been installed and inspected in compliance with the local electrical permitting authority as verified
by the signature below or the additionally attached document.
Inspector Signature: Date:
Inspector Name: Authority Having Jurisdiction (city/county):
***Please print clearly or type and return completed along with any additional documentation***
For Office Use Only
Date Received:
ELK RIVER MUNICIPAL UTILITIES 1
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
STATE OF MINNESOTA
DISTRIBUTED GENERATION INTERCONNECTION
REQUIREMENTS
TABLE OF CONTENTS
Foreword 2
1. Introduction 3
2. References 6
3. Types of Interconnections 7
4. Interconnection Issues and Technical Requirements 10
5. Generation Metering, Monitoring and Control 13
Table 5A— Metering, Monitoring and Control Requirements 14
6. Protective Devices and Systems 17
Table 6A— Relay Requirements 19
7. Agreements 20
8. Testing Requirements 21
Attachments: System Diagrams
Figure 1 —Open Transition 25
Figure 2—Closed Transition 26
Figure 3 —Soft Loading Transfer
With Limited Parallel Operation 27
Figure 4—Soft Loading Transfer
With Limited Parallel Operation 28
Figure 5— Extended Parallel
With Transfer-Trip 29
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Foreword
Electric distribution system connected generation units span a wide range of sizes and electrical
characteristics. Electrical distribution system design varies widely from that required to serve the
rural customer to that needed to serve the large commercial customer. With so many variations
possible, it becomes complex and difficult to create one interconnection standard that fits all
generation interconnection situations.
In establishing a generation interconnection standard there are three main issues that must be
addressed; Safety, Economics and Reliability.
The first and most important issue is safety; the safety of the general public and of the employees
working on the electrical systems. This standard establishes the technical requirements that
must be met to ensure the safety of the general public and of the employees working with the
Area EPS. Typically designing the interconnection system for the safety of the general public will
also provide protection for the interconnected equipment.
The second issue is economics; the interconnection design must be affordable to build. The
interconnection standard must be developed so that only those items, that are necessary to meet
safety and reliability, are included in the requirements. This standard sets the benchmark for the
minimum required equipment. If it is not needed, it will not be required.
The third issue is reliability; the generation system must be designed and interconnected such
that the reliability and the service quality for all customers of the electrical power systems are not
compromised. This applies to all electrical systems not just the Area EPS.
Many generation interconnection standards exist or are in draft form. The IEEE, FERC and many
states have been working on generation interconnection standards. There are other standards
such as the National Electrical Code (NEC) that, establish requirements for electrical installations.
The NEC requirements are in addition to this standard. This standard is designed to document
the requirements where the NEC has left the establishment of the standard to "the authority
having jurisdiction" or to cover issues which are not covered in other national standards.
This standard covers installations, with an aggregated capacity of 10MW's or less. Many of the
requirements in this document do not apply to small, 40kW or less generation installations. As an
aid to the small, distributed generation customer, these small unit interconnection requirements
have been extracted from this full standard and are available as a separate, simplified document
titled: "Standards for Interconnecting Generation Sources, Rated Less then 40kW with Minnesota
Electric Utilities"
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
1. Introduction
This standard has been developed to document the technical requirements for the interconnection
between a Generation System and an area electrical power system "Utility system or Area EPS". This
standard covers 3 phase Generation Systems with an aggregate capacity of 10 MW's or less and
single phase Generation Systems with an aggregate capacity of 40kW or less at the Point of
Common Coupling. This standard covers Generation Systems that are interconnected with the Area
EPS's distribution facilities. This standard does not cover Generation Systems that are directly
interconnected with the Area EPS's Transmission System, Contact the Area EPS for their
Transmission System interconnection standards.
While, this standard provides the technical requirements for interconnecting a Generation System
with a typical radial distribution system, it is important to note that there are some unique Area EPS,
which have special interconnection needs. One example of a unique Area EPS would be one
operated as a "networked" system. This standard does not cover the additional special requirements
of those systems. The Interconnection Customer must contact the Owner/operator of the Area EPS
with which the interconnection is intended, to make sure that the Generation System is not proposed
to be interconnected with a unique Area EPS. If the planned interconnection is with a unique Area
EPS, the Interconnection Customer must obtain the additional requirements for interconnecting with
the Area EPS.
The Area EPS operator has the right to limit the maximum size of any Generation System or number
of Generation Systems that, may want to interconnect, if the Generation System would reduce the
reliability to the other customers connected to the Area EPS.
This standard only covers the technical requirements and does not cover the interconnection process
from the planning of a project through approval and construction. Please read the companion
document "State of Minnesota Interconnection Process for Distributed Generation Systems" for the
description of the procedure to follow and a generic version of the forms to submit. It is important to
also get copies of the Area EPS's tariff's concerning generation interconnection which will include
rates, costs and standard interconnection agreements. The earlier the Interconnection Customer gets
the Area EPS operator involved in the planning and design of the Generation System interconnection
the smoother the process will go.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
A) Definitions
The definitions defined in the "IEEE Standard for Interconnecting Distributed Resources with
Electric Power Systems" (1547 Draft Ver. 11) apply to this document as well. The following
definitions are in addition to the ones defined in IEEE 1547, or are repeated from the IEEE 1547
standard.
i) "Area EPS"an electric power system (EPS)that serves Local EPS's. Note.Typically,an Area EPS has
primary access to public rights-of-way,priority crossing of property boundaries,etc.
ii) "Generation" any device producing electrical energy, i.e., rotating generators driven by wind, steam
turbines, internal combustion engines, hydraulic turbines, solar, fuel cells, etc.; or any other electric
producing device,including energy storagetechnologies.
iii)"Generation System"the interconnected Distributed Generation(s),controls, relays,switches, breakers,
transformers, inverters and associated wiring and cables, up to the Point of Common Coupling.
iv)"Interconnection Customer" the party or parties who are responsible for meeting the requirements of
this standard.This could be the Generation System applicant,installer,designer,owner or operator.
v) "Local EPS" an electric power system (EPS) contained entirely within a single premises or group of
premises.
vi) "Point of Common Coupling" the point where the Local EPS is connected to an Area EPS.
vii) "Transmission System", are those facilities as defined by using the guidelines established by the
Minnesota State Public Utilities Commission; "In the Matter of Developing Statewide Jurisdictional
Boundary Guidelines for Functionally Separating Interstate Transmission from Generation and Local
Distribution Functions" Docket No.E-015/M-99-1002.
viii) "Type-Certified" Generation paralleling equipment that is listed by an OSHA listed national testing
laboratory as having met the applicable type testing requirement of UL 1741.At the time is document
was prepared this was the only national standard available for certification of generation transfer
switch equipment. This definition does not preclude other forms of type- certification if agreeable to
the Area EPSoperator.
B) Interconnection Requirements Goals
This standard defines the minimum technical requirements for the implementation of the electrical
interconnection between the Generation System and the Area EPS. It does not define the overall
requirements for the Generation System. The requirements in this standard are intended to achieve
the following:
i) Ensure the safety of utility personnel and contractors working on the electrical power system.
ii) Ensure the safety of utility customers and the general public.
iii)Protect and minimize the possible damage to the electrical power system and other customer's
property.
iv) Ensure proper operation to minimize adverse operating conditions on the electrical power
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
system.
C) Protection
The Generation System and Point of Common Coupling shall be designed with proper protective
devices to promptly and automatically disconnect the Generation from the Area EPS in the event of
a fault or other system abnormality. The type of protection required will be determined by:
i) Size and type of the generatingequipment.
ii)The method of connecting and disconnecting the Generation System from the electrical power system.
iii)The location of generating equipment on the Area EPS.
D) Area EPS Modifications
Depending upon the match between the Generation System, the Area EPS and how the
Generation System is operated, certain modifications and/or additions may be required to the
existing Area EPS with the addition of the Generation System. To the extent possible, this standard
describes the modifications which could be necessary to the Area EPS for different types of
Generation Systems. For some unique interconnections, additional and/or different protective
devices, system modifications and/or additions will be required by the Area EPS operator; in these
cases the Area EPS operator will provide the final determination of the required modifications
and/or additions. If any special requirements are necessary they will be identified by the Area EPS
operator during the application review process.
E) Generation System Protection
The Interconnection Customer is solely responsible for providing protection for the Generation
System. Protection systems required in this standard, are structured to protect the Area EPS's
electrical power system and the public. The Generation System Protection is not provided for in this
standard. Additional protection equipment may be required to ensure proper operation for the
Generation System. This is especially true while operating disconnected, from the Area EPS. The
Area EPS does not assume responsibility for protection of the Generation System equipment or of
any portion Local EPS.
F) Electrical Code Compliance
Interconnection Customer shall be responsible for complying with all applicable local, independent,
state and federal codes such as building codes, National Electric Code (NEC), National Electrical
Safety Code (NESC) and noise and emissions standards. As required by Minnesota State law, the
Area EPS will require proof of complying with the National Electrical Code before the
interconnection is made, through installation approval by an electrical inspector recognized by the
Minnesota State Board of Electricity.
The Interconnection Customer's Generation System and installation shall comply with latest
revisions of the ANSI/IEEE standards applicable to the installation, especially IEEE 1547;
"Standard for Interconnecting Distributed Resources with Electric Power Systems". See the
reference section in this document for a partial list of the standards which apply to the generation
installations covered by this standard.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
2. References
The following standards shall be used in conjunction with this standard. When the stated version of
the following standards is superseded by an approved revision then that revision shall apply.
IEEE Std 100-2000, "IEEE Standard Dictionary of Electrical and Electronic Terms"
IEEE Std 519-1992, "IEEE Recommended Practices and Requirements for Harmonic Control in
Electric Power Systems"
IEEE Std 929-2000,"IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems".
IEEE Std 1547, "IEEE Standard for Interconnecting Distributed Resources with Electric Power
Systems"
IEEE Std C37.90.1-1989 (1995), "IEEE Standard Surge Withstand Capability(SEC) Tests for
Protective Relays and Relay Systems".
IEEE Std C37.90.2 (1995), "IEEE Standard Withstand Capability of Relay Systems to Radiated
Electromagnetic Interference from Transceivers".
IEEE Std C62.41.2-2002, "IEEE Recommended Practice on Characterization of Surges in Low
Voltage (1000V and Less)AC Power Circuits"
IEEE Std C62.42-1992 (2002), "IEEE Recommended Practice on Surge Testing for Equipment
Connected to Low Voltage (1000V and less)AC Power Circuits"
ANSI C84.1-1995,"Electric Power Systems and Equipment—Voltage Ratings (60 Hertz)"
ANSI/IEEE 446-1995, "Recommended Practice for Emergency and Standby Power Systems for
Industrial and Commercial Applications".
ANSI/IEEE Standard 142-1991, "IEEE Recommended Practice for Grounding of Industrial
and Commercial Power Systems—Green Book",
UL Std. 1741 "Inverters, Converters, and Controllers for use in Independent Power Systems"
NEC—"National Electrical Code", National Fire Protection Association (NFPA), NFPA-70-2002.
NESC—"National Electrical Safety Code". ANSI C2-2000, Published by the Institute of Electrical and
Electronics Engineers, Inc.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
3. Types of Interconnections
A)The manner in which the Generation System is connected to and disconnected from the Area EPS can vary.
Most transfer systems normally operate using one of the following five methods of transferring the load
from the Area EPS to the Generation System.
B)If a transfer system is installed which has a user accessible selection of several transfer modes, the transfer
mode that has the greatest protection requirements will establish the protection requirements for that
transfer system.
i) Open Transition (Break-Before-Make) Transfer Switch — With this transfer switch, the load to be
supplied from the Distributed Generation is first disconnected from the Area EPS and then connected
to the Generation.This transfer can be relatively quick, but voltage and frequency excursions are to be
expected during transfer. Computer equipment and other sensitive equipment will shut down and
reset.The transfer switch typically consists of a standard UL approved transfer switch with mechanical
interlocks between the two source contactors that drop the Area EPS source before the Distributed
Generation is connected to supply the load.
(1)To qualify as an Open Transition switch and the limited protective requirements, mechanical
interlocks are required between the two source contacts. This is required to ensure that one of
the contacts is always open and the Generation System is never operated in parallel with the Area
EPS. If the mechanical interlock is not present, the protection requirements are as if the switch is
a closed transition switch.
(2)As a practical point of application, this type of transfer switch is typically used for loads less than
500kW.This is due to possible voltage flicker problems created on the Area EPS,when the load is
removed from or returned to the Area EPS source. Depending up the Area EPS's stiffness this level
may be larger or smaller than the 500kW level.
(3) Figure 1 at the end of this document provides a typical one-line of this type of installation.
ii) Quick Open Transition (Break-Before-Make) Transfer Switch — The load to be supplied from the
Distributed Generation is first disconnected from the Area EPS and then connected to the Distributed
Generation, similar to the open transition. However, this transition is typically much faster(under 500
ms) than the conventional open transition transfer operation. Voltage and frequency excursions will
still occur, but some computer equipment and other sensitive equipment will typically not be affected
with a properly designed system. The transfer switch consists of a standard UL approved transfer
switch, with mechanical interlocks between the two source contacts that drop the Area EPS source
before the Distributed Generation is connected to supply the load.
(1)Mechanical interlocks are required between the two source contacts to ensure that one of the
contacts is always open. If the mechanical interlock is not present, the protection requirements
are as if the switch is a closed transition switch
(2)As a practical point of application this type of transfer switch is typically used for loads less than
500kW.This is due to possible voltage flicker problems created on the Area EPS,when the load is
removed from or returned to the Area EPS source. Depending up the Area EPS's stiffness this level
may be larger or smaller than the 500kW level.
(3)Figure 2 at the end of this document provides a typical one-line of this type of installation and
shows the required protective elements.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
iii)Closed Transition (Make-Before-Break) Transfer Switch —The Distributed Generation is synchronized
with the Area EPS prior to the transfer occurring. The transfer switch then parallels with the Area EPS
for a short time(100 msec. or less)and then the Generation System and load is disconnected from the
Area EPS. This transfer is less disruptive than the Quick Open Transition because it allows the
Distributed Generation a brief time to pick up the load before the support of the Area EPS is lost. With
this type of transfer,the load is always being supplied by the Area EPS or the Distributed Generation.
(1)As a practical point of application this type of transfer switch is typically used for loads less than
500kW.This is due to possible voltage flicker problems created on the Area EPS, when the load is
removed from or returned to the Area EPS source. Depending up the Area EPS's stiffness this level
may be larger or smaller than the 500kW level.
(2)Figure 2 at the end of this document provides a typical one-line of this type of installation and
shows the required protective elements. The closed transition switch must include a separate
parallel time limit relay, which is not part of the generation control PLC and trips the generation
from the system for a failure of the transfer switch and/or the transfer switch controls.
iv) Soft Loading Transfer Switch
(1)With Limited Parallel Operation—The Distributed Generation is paralleled with the Area EPS for a
limited amount of time (generally less than 1-2 minutes) to gradually transfer the load from the
Area EPS to the Generation System.This minimizes the voltage and frequency problems, by softly
loading and unloading the Generation System.
(a)The maximum parallel operation shall be controlled, via a parallel timing limit relay (62PL).
This parallel time limit relay shall be a separate relay and not part of the generation control
PLC.
(b) Protective Relaying is required as described in section 6.
(c) Figure 3 at the end of this document provide typical one-line diagrams of this type of
installation and show the required protective elements.
(2)With Extended Parallel Operation — The Generation System is paralleled with the Area EPS in
continuous operation. Special design, coordination and agreements are required before any
extended parallel operation will be permitted. The Area EPS interconnection study will identify
the issues involved.
(a)Any anticipated use in the extended parallel mode requires special agreements and special
protection coordination.
(b) Protective Relaying is required as described in section 6.
(c) Figure 4 at the end of this document provides a typical one-line for this type of
interconnection. It must be emphasized that this is a typical installations only and final
installations may vary from the examples shown due to transformer connections, breaker
configuration,etc.
v) Inverter Connection
This is a continuous parallel connection with the system. Small Generation Systems may
utilize inverters to interface to the Area EPS. Solar, wind and fuel cells are some examples of
Generation which typically use inverters to connect to the Area EPS. The design of such
inverters shall either contain all necessary protection to prevent unintentional islanding, or the
Interconnection Customer shall install conventional protection to affect the same protection.
All required protective elements for a soft-loading transfer switch apply to an inverter
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
connection. Figure 5 at the end of this document, shows a typical inverter interconnection.
(1)Inverter Certification—Prior to installation,the inverter shall be Type-Certified for interconnection
to the electrical power system. The certification will confirm its anti- islanding protection and
power quality related levels at the Point of Common Coupling. Also, utility compatibility, electric
shock hazard and fire safety are approved through UL listing of the model. Once this Type
Certification is completed for that specific model, additional design review of the inverter should
not be necessary by the Area EPS operator.
(2)For three-phase operation, the inverter control must also be able to detect and separate for the
loss of one phase. Larger inverters will still require custom protection settings, which must be
calculated and designed to be compatible with the specific Area EPS being interconnected with.
(3)A visible disconnect is required for safely isolating the Distributed Generation when connecting
with an inverter.The inverter shall not be used as a safety isolation device.
(4)When banks of inverter systems are installed at one location, a design review by the Area EPS
must be performed to determine any additional protection systems, metering or other needs.The
issues will be identified by the Area EPS during the interconnection study process
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
4. Interconnection Issues and Technical Requirements
A)General Requirements -The following requirements apply to all interconnected generating equipment. The
Area EPS shall be the source side and the customer's system shall be the load side in the following
interconnection requirements.
i)Visible Disconnect-A disconnecting device shall be installed to electrically isolate the Area EPS from the
Generation System.The only exception for the installation of a visible disconnect is if the generation is
interconnected via a mechanically interlocked open transfer switch and installed per the NEC (702.6)
"so as to prevent the inadvertent interconnection of normal and alternate sources of supply in any
operation of the transferequipment."
The visible disconnect shall provide a visible air gap between Interconnection Customer's
Generation and the Area EPS in order to establish the safety isolation required for work on the
Area EPS. This disconnecting device shall be readily accessible 24 hours per day by the Area
EPS field personnel and shall be capable of padlocking by the Area EPS field personnel. The
disconnecting device shall be lockable in the open position.
The visible disconnect shall be a UL approved or National Electrical Manufacture's Association
approved, manual safety disconnect switch of adequate ampere capacity. The visible
disconnect shall not open the neutral when the switch is open. A draw-out type circuit breaker
can be used as a visual open.
The visible disconnect shall be labeled, as required by the Area EPS Operator to inform the
Area EPS field personnel.
ii) Energization of Equipment by Generation System — The Generation System shall not energize a de-
energized Area EPS. The Interconnection Customer shall install the necessary padlocking (lockable)
devices on equipment to prevent the energization of a de-energized electrical power system. Lock out
relays shall automatically block the closing of breakers or transfer switches on to a de-energized Area
EPS.
iii)Power Factor-The power factor of the Generation System and connected load shall be as follows;
(1)Inverter Based interconnections — shall operate at a power factor of no less than 90%.at the
inverterterminals.
(2) Limited Parallel Generation Systems, such as closed transfer or soft-loading transfer systems shall
operate at a power factor of no less than 90%, during the period when the Generation System is
parallel with the Area EPS,as measured at the Point of Common Coupling.
(3)Extended Parallel Generation Systems shall be designed to be capable of operating between 90%
lagging and 95% leading. These Generation Systems shall normally operate near unity power
factor (+/-98%) or as mutually agreed between the Area EPS operator and the Interconnection
Customer.
iv) Grounding Issues
(1)Grounding of sufficient size to handle the maximum available ground fault current shall be
designed and installed to limit step and touch potentials to safe levels as set forth in "IEEE Guide
for Safety in AC Substation Grounding",ANSI/IEEE Standard 80.
(2)It is the responsibility of the Interconnection Customer to provide the required grounding for the
Generation System. Agood standard for this is the IEEE Std. 142-1991
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
"Grounding of Industrial and Commercial Power Systems"
(3)All electrical equipment shall be grounded in accordance with local,state and federal electrical
and safety codes and applicable standards
v)Sales to Area EPS or other parties—Transportation of energy on the Transmission system is regulated
by the area reliability council and FERC. Those contractual requirements are not included in this
standard. The Area EPS will provide these additional contractual requirements during the
interconnection approval process.
B)For Inverter based,closed transfer and soft loading interconnections-The following additional
requirements apply:
i) Fault and Line Clearing-The Generation System shall be removed from the Area EPS for any faults,or
outages occurring on the electrical circuit serving the GenerationSystem
ii) Operating Limits in order to minimize objectionable and adverse operating conditions on the electric
service provided to other customers connected to the Area EPS,the Generation System shall meet
the Voltage, Frequency, Harmonic and Flicker operating criteria as defined in the IEEE 1547 standard
during periods when the Generation System is operated in parallel with the Area EPS.
If the Generation System creates voltage changes greater than 4% on the Area EPS, it is the
responsibility of the Interconnection Customer to correct these voltage sag/swell problems
caused by the operation of the Generation System. If the operation of the interconnected
Generation System causes flicker, which causes problems for others customer's
interconnected to the Area EPS, the Interconnection Customer is responsible for correcting the
problem.
iii)Flicker-The operation of Generation System is not allowed to produce excessive flicker to
adjacent customers.See the IEEE 1547 standard for a more complete discussion on this
requirement.
The stiffer the Area EPS, the larger a block load change that it will be able to handle. For any
of the transfer systems the Area EPS voltage shall not drop or rise greater than 4%when the
load is added or removed from the Area EPS. It is important to note, that if another
interconnected customer complains about the voltage change caused by the Generation
System, even if the voltage change is below the 4% level, it is the Interconnection Customer's
responsibility to correct or pay for correcting the problem. Utility experience has shown that
customers have seldom objected to instantaneous voltage changes of less than 2% on the
Area EPS, so most Area EPS operators use a 2% design criteria
iv)Interference-The Interconnection Customer shall disconnect the Distributed Generation from the Area
EPS if the Distributed Generation causes radio, television or electrical service interference to other
customers, via the EPS or interference with the operation of Area EPS. The Interconnection Customer
shall either effect repairs to the Generation System or reimburse the Area EPS Operator for the cost of
any required Area EPS modifications due to the interference.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
v) Synchronization of CustomerGeneration-
(1)An automatic synchronizer with synch-check relaying is required for unattended automatic quick
open transition,closed transition or soft loading transfer systems.
(2)To prevent unnecessary voltage fluctuations on the Area EPS, it is required that the synchronizing
equipment be capable of closing the Distributed Generation into the Area EPS within the limits
defined in IEEE 1547. Actual settings shall be determined by the Registered Professional Engineer
establishing the protective settings for the installation.
(3)Unintended Islanding — Under certain conditions with extended parallel operation, it would be
possible for a part of the Area EPS to be disconnected from the rest of the Area EPS and have the
Generation System continue to operate and provide power to a portion of the isolated circuit.
This condition is called "islanding". It is not possible to successfully reconnect the energized
isolated circuit to the rest of the Area EPS since there are no synchronizing controls associated
with all of the possible locations of disconnection. Therefore, it is a requirement that the
Generation System be automatically disconnected from the Area EPS immediately by protective
relays for any condition that would cause the Area EPS to be de-energized. The Generation
System must either isolate with the customer's load or trip.The Generation System must also be
blocked from closing back into the Area EPS until the Area EPS is reenergized and the Area EPS
voltage is within Range B of ANSI C84.1 Table 1 for a minimum of 1 minute. Depending upon the
size of the Generation System it may be necessary to install direct transfer trip equipment from
the Area EPS source(s) to remotely trip the generation interconnection to prevent islanding for
certain conditions
vi)Disconnection—the Area EPS operator may refuse to connect or may disconnect a Generation System
from the Area EPS under the following conditions:
(1)Lack of approved Standard Application Form and Standard Interconnection Agreement.
(2)Termination of interconnection by mutual agreement.
(3) Non-Compliance with the technical or contractual requirements.
(4)System Emergency or for imminent danger to the public or Area EPS personnel(Safety).
(5)Routine maintenance, repairs and modifications to the Area EPS.The Area EPS operator shall
coordinate planned outages with the Interconnection Customer to the extent possible.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
5. Generation Metering, Monitoring and Control
Metering, Monitoring and Control — Depending upon the method of interconnection and the size of the
Generation System, there are different metering, monitoring and control requirements Table 5A is a
table summarizing the metering, monitoring and control requirements.
Due to the variation in Generation Systems and Area EPS operational needs, the requirements for
metering, monitoring and control listed in this document are the expected maximum requirements that
the Area EPS will apply to the Generation System. It is important to note that for some Generation
System installations the Area EPS may wave some of the requirements of this section if they are not
needed. An example of this is with rural or low capacity feeders which require more monitoring then
larger capacity, typically urban feeders.
Another factor which will affect the metering, monitoring and control requirements will be the tariff
under which the Interconnection Customer is supplied by the Area EPS. Table 5A has been written to
cover most application, but some Area EPS tariffs may have greater or less metering, monitoring and
control requirements then, as shown in Table 5A. .
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
TABLE 5A
Metering, Monitoring and Control Requirements
Generation System Generation
Generation Remote
Capacity at Point of Metering Monitoring Remote
Common Coupling Control
<_40 kW with all sales to Bi-Directional metering at the point None Required None Required
Area EPS of common coupling
>40 kW Determined by engineering study Determined by Determined by
engineering study engineering
study
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
A) Metering
i)As shown in Table 5A the requirements for metering will depend up on the type of generation and the
type of interconnection. For most installations, the requirement is a single point of metering at the
Point of Common Coupling. The Area EPS Operator will install a special meter that is capable of
measuring and recording energy flow in both directions, for three phase installations or two detented
meters wired in series,for single phase installations. A dedicated
- direct dial phone line may be required to be supplied to the meter for the Area EPS's use to
read the metering. Some monitoring may be done through the meter and the dedicated —
direct dial phone line, so in many installations the remote monitoring and the meter reading can
be done using the same dial-up phone line.
ii) Depending upon which tariff the Generation System and/or customer's load is being supplied under,
additional metering requirements may result. Contact the Area EPS for tariff requirements. In some
cases, the direct dial-phone line requirement may be waived by the Area EPS for smaller Generation
Systems.
iii)All Area EPS's revenue meters shall be supplied, owned and maintained by the Area EPS. All voltage
transformers (VT) and current transformers (CT), used for revenue metering shall be approved and/or
supplied by the Area EPS. Area EPS's standard practices for instrument transformer location and wiring
shall be followed for the revenue metering.
iv)For Generation Systems that sell power and are greater than 40kW in size, separate metering of the
generation and of the load is required. A single meter recording the power flow at the Point of
Common Coupling for both the Generation and the load is not allowed by the rules under which the
area transmission system is operated. The Area EPS is required to report to the regional reliability
council (MAPP) the total peak load requirements and is also required to own or have contracted for,
accredited generation capacity of 115%of the experienced peak load level for each month of the year.
Failure to meet this requirement results in a large monetary penalty for the Area EPS operator.
v) For Generation Systems which are less then 40kW in rated capacity and are qualified facilities under
PURPA (Public Utilities Regulatory Power Act — Federal Gov. 1978), net metering is allowed and
provides the generation system the ability to back feed the Area EPS at some times and bank that
energy for use at other times. Some of the qualified facilities under PURPA are solar, wind, hydro, and
biomass. For these net-metered installations, the Area EPS may use a single meter to record the bi-
directional flow or the Area EPS Operator may elect to use two detented meters, each one to record
the flow of energy in onedirection.
B) Monitoring (SCADA) is required as shown in table 5A. The need for monitoring is based on the need of
the system control center to have the information necessary for the reliable operation of the Area EPS's.This
remote monitoring is especially important during periods of abnormal and emergency operation.
The difference in Table 5A between remote monitoring and SCADA is that SCADA typically is a
system that is in continuous communication with a central computer and provides updated values
and status, to the Area EPS operator, within several seconds of the changes in the field. Remote
monitoring on the other hand will tend to provide updated values and status within minutes of the
change in state of the field. Remote monitoring is typically less expensive to install and operate.
i) Where Remote Monitoring or SCADA is required, as shown in Table 5A, the following monitored and
control points are required:
(1)Real and reactive power flow for each Generation System (kW and kVAR). Only required if
separate metering of the Generation and the load is required, otherwise #4 monitored at the
point of Common Coupling will meet the requirements.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
(2) Phase voltage representative of the Area EPS's service to the facility.
(3)Status(open/close)of Distributed Generation and interconnection breaker(s)or if transfer switch
is used,status of transferswitch(s).
(4) Customer load from Area EPS service(kW and kVAR).
(5) Control of interconnection breaker-if required by the Area EPS operator.
When telemetry is required, the Interconnection Customer must provide the communications
medium to the Area EPS's Control Center. This could be radio, dedicated phone circuit or
other form of communication. If a telephone circuit is used, the Interconnection Customer
must also provide the telephone circuit protection. The Interconnection Customer shall
coordinate the RTU (remote terminal unit) addition with the Area EPS. The Area EPS may
require a specific RTU and/or protocol to match their SCADA or remote monitoring system.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
6. Protective Devices and Systems
A)Protective devices required to permit safe and proper operation of the Area EPS while interconnected with
customer's Generation System are shown in the figures at the end of this document. In general,an increased
degree of protection is required for increased Distributed Generation size. This is due to the greater
magnitude of short circuit currents and the potential impact to system stability from these installations.
Medium and large installations require more sensitive and faster protection to minimize damage and ensure
safety.
If a transfer system is installed which has a user accessible selection of several transfer modes, the
transfer mode which has the greatest protection requirements will establish the protection
requirements for that transfer system.
The Interconnection Customer shall provide protective devices and systems to detect the Voltage,
Frequency, Harmonic and Flicker levels as defined in the IEEE 1547 standard during periods when
the Generation System is operated in parallel with the Area EPS. The Interconnection Customer
shall be responsible for the purchase, installation, and maintenance of these devices. Discussion
on the requirements for these protective devices and systems follows:
i) Relay settings
(1)If the Generation System is utilizing a Type-Certified system, such as a UL listed inverter a
Professional Electrical Engineer is not required to review and approve the design of the
interconnecting system. If the Generation System interconnecting device is not Type-Certified or
if the Type-Certified Generation System interconnecting device has additional design
modifications made, the Generation System control, the protective system, and the
interconnecting device(s) shall be reviewed and approved by a Professional Electrical Engineer,
registered in the State of Minnesota.
(2)A copy of the proposed protective relay settings shall be supplied to the Area EPS operator for
review and approval,to ensure proper coordination between the generation system and the Area
EPS.
ii) Relays
(1)All equipment providing relaying functions shall meet or exceed ANSI/IEEE Standards for
protective relays, i.e.,C37.90,C37.90.1 andC37.90.2.
(2)Required relays that are not "draw-out" cased relays shall have test plugs or test switches
installed to permit field testing and maintenance of the relay without unwiring or disassembling
the equipment. Inverter based protection is excluded from this requirement for Generation
Systems<40kW at the Point of Common Coupling.
(3)Three phase interconnections shall utilize three phase power relays, which monitor all three
phases of voltage and current, unless so noted in the appendix one-lines.
(4)All relays shall be equipped with setting limit ranges at least as wide as specified in IEEE 1547,and
meet other requirements as specified in the Area EPS interconnect study. Setting limit ranges are
not to be confused with the actual relay settings required for the proper operation of the
installation.At a minimum, all protective systems shall meet the requirements established in IEEE
1547.
(a) Over-current relays(IEEE Device 50/51 or 50/51V)shall operate to trip the protecting breaker
at a level to ensure protection of the equipment and at a speed to allow
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
proper coordination with other protective devices. For example, the over-current relay
monitoring the interconnection breaker shall operate fast enough for a fault on the
customer's equipment, so that no protective devices will operate on the Area EPS.
51V is a voltage restrained or controlled over-current relay and may be required to
provide proper coordination with the Area EPS.
(b) Over-voltage relays (IEEE Device 59) shall operate to trip the Distributed Generation per the
requirements of IEEE 1547.
(c) Under-voltage relays(IEEE Device 27) shall operate to trip the Distributed Generation per the
requirements of IEEE 1547
(d) Over-frequency relays (IEEE Device 810) shall operate to trip the Distributed Generation off-
line per the requirements of IEEE 1547.
(e) Under-frequency relay(IEEE Device 81U) shall operate to trip the Distributed Generation off-
line per the requirements of IEEE 1547. For Generation Systems with an aggregate capacity
greater then 30kW,the Distribution Generation shall trip off-line when the frequency drops
below 57.0-59.8 Hz. typically this is set at 59.5 Hz, with a trip time of 0.16 seconds, but
coordination with the Area EPS is required for this setting.
The Area EPS will provide the reference frequency of 60 Hz. The Distributed
Generation control system must be used to match this reference. The protective
relaying in the interconnection system will be expected to maintain the frequency of
the output of the Generation.
(f) Reverse power relays(IEEE Device 32) (power flowing from the Generation System to the Area
EPS) shall operate to trip the Distributed Generation off-line for a power flow to the system
with a maximum time delay of 2.0seconds.
(g) Lockout Relay (IEEE Device 86) is a mechanically locking device which is wired into the close
circuit of a breaker or switch and when tripped will prevent any close signal from closing that
device.This relay requires that a person manually resets the lockout relay before that device
can be reclosed.These relays are used to ensure that a denergized system is not reenergized
by automatic control action, and prevents a failed control from auto-reclosing an open
breaker or switch.
(h)Transfer Trip —All Generation Systems are required to disconnect from the Area EPS when
the Area EPS is disconnected from its source, to avoid unintentional islanding. With larger
Generation Systems, which remain in parallel with the Area EPS, a transfer trip system may
be required to sense the loss of the Area EPS source. When the Area EPS source is lost, a
signal is sent to the Generation System to separate the Generation from the Area EPS. The
size of the Generation System vs the capacity and minimum loading on the feeder will
dictate the need for transfer trip installation. The Area EPS interconnection study will
identify the specific requirements.
If multiple Area EPS sources are available or multiple points of sectionalizing on the
Area EPS, then more than one transfer trip system may be required. Area EPS
interconnection study will identify the specific requirements. For some installations
the alternate Area EPS source(s) may not be utilized except in rare occasions. If this
is the situation, the Interconnection Customer may elect to have the Generation
System locked out when the alternate source(s) are utilized, if agreeable to the Area
EPS operator.
(i) Parallel limit timing relay (IEEE Device 62PL) set at a maximum of 120 seconds for
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
soft transfer installations and set no longer then 100ms for quick transfer installations, shall
trip the Distributed Generation circuit breaker on limited parallel interconnection systems.
Power for the 62 PL relay must be independent of the transfer switch control power. The
62PL timing must be an independent device from the transfer control and shall not be part
of the generation PLC or other control system.
TABLE 6A
SUMMARY OF RELAYING REQUIREMENTS
Over- Reverse Parallel Sync-
Type of current Voltage Frequency Power Lockout Limit Check Transfer
Interconnection (50/51) (27/59) (810/U) (32) (86) Timer (25) Trip
540 kW Yes Yes Yes Yes
>40 kW Determined Determined by Determined by Determined by Determined by Determined by Determined Determined by
by Engineering Engineering Study Engineering Engineering Engineering by Engineering
Engineering Study Study Study Study Engineering Study
Study Study
338
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
7. Agreements
A)Interconnection Agreement —This agreement is required for all Generation Systems that parallel with the
Area EPS. Each Area EPS's tariffs contain standard interconnection agreements. There are different
interconnection agreements depending upon the size and type of Generation System. This agreement
contains the terms and conditions upon which the Generation System is to be connected, constructed and
maintained, when operated in parallel with the Area EPS. Some of the issues covered in the interconnection
agreement are as follows;
i) Construction Process
ii)Testing Requirements
iii) Maintenance Requirements
iv) Firm Operating Requirements such as Power Factor
v)Access requirements for the Area EPS personnel
vi) Disconnection of the Generation System (Emergency and Non-emergency)
vii)Term of Agreement
viii) Insurance Requirements
ix) Dispute Resolution Procedures
B)Operating Agreement — For Generation Systems that normally operate in parallel with the Area EPS, an
agreement separate from the interconnection agreement, called the "operating agreement", is usually
created. This agreement is created for the benefit of both the Interconnection Customer and the Area EPS
operator and will be agreed to between the Parties. This agreement will be dynamic and is intended to be
updated and reviewed annually. For some smaller systems, the operating agreement can simply be a letter
agreement for larger and more intergraded Generation Systems the operating agreement will tend to be
more involved and more formal. The operating agreement covers items that are necessary for the reliable
operation of the Local and Area EPS. The items typically included in the operating agreement are as follows;
i) Emergency and normal contact information for both the Area EPS operations center and for the
Interconnection Customer
ii) Procedures for periodic Generation System test runs.
iii) Procedures for maintenance on the Area EPS that affect the Generation System.
iv) Emergency Generation Operation Procedures
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
8. Testing Requirements
A) Pre-Certification of equipment
The most important part of the process to interconnect generation with Local and Area EPS's is
safety. One of the key components of ensuring the safety of the public and employees is to
ensure that the design and implementation of the elements connected to the electrical power
system operate as required. To meet this goal, all of the electrical wiring in a business or
residence, is required by the State of Minnesota to be listed by a recognized testing and
certification laboratory, for its intended purpose. Typically we see this as "UL" listed. Since
Generation Systems have tended to be uniquely designed for each installation they have been
designed and approved by Professional Engineers. As the number of Generation Systems
installed increase, vendors are working towards creating equipment packages which can be
tested in the factory and then will only require limited field testing. This will allow us to move
towards "plug and play" installations. For this reason, this standard recognizes the efficiency of
"pre-certification" of Generation System equipment packages that will help streamline the
design and installation process.
An equipment package shall be considered certified for interconnected operation if it has been
submitted by a manufacture, tested and listed by a nationally recognized testing and
certification laboratory(NRTL)for continuous utility interactive operation in compliance with the
applicable codes and standards. Presently generation paralleling equipment that is listed by a
nationally recognized testing laboratory as having met the applicable type-testing requirements
of UL 1741 and IEEE 929, shall be acceptable for interconnection without additional protection
system requirements. An "equipment package" shall include all interface components
including switchgear, inverters, or other interface devices and may include an integrated
generator or electric source. If the equipment package has been tested and listed as an
integrated package which includes a generator or other electric source, it shall not require
further design review, testing or additional equipment to meet the certification requirements for
interconnection. If the equipment package includes only the interface components (switchgear,
inverters, or other interface devices), then the Interconnection Customer shall show that the
generator or other electric source being utilized with the equipment package is compatible with
the equipment package and consistent with the testing and listing specified for the package.
Provided the generator or electric source combined with the equipment package is consistent
with the testing ad listing performed by the nationally recognized testing and certification
laboratory, no further design review, testing or additional equipment shall be required to meet
the certification requirements of this interconnection procedure. A certified equipment package
does not include equipment provided by the Area EPS.
The use of Pre-Certified equipment does not automatically qualify the Interconnection
Customer to be interconnected to the Area EPS. An application will still need to be submitted
and an interconnection review may still need to be performed, to determine the compatibility of
the Generation System with the Area EPS.
B) Pre-CommissioningTests
i) Non-Certified Equipment
(1) Protective Relaying and Equipment Related to Islanding
(a) Distributed generation that is not Type-Certified (type tested), shall be equipped with
protective hardware and/or software designed to prevent the Generation from being
connected to a de-energized Area EPS.
(b)The Generation may not close into a de-energized Area EPS and protection provided
340
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
to prevent this from occurring. It is the Interconnection Customer's responsibility to
provide a final design and to install the protective measures required by the Area
EPS. The Area EPS will review and approve the design, the types of relays specified,
and the installation. Mutually agreed upon exceptions may at times be necessary and
desirable. It is strongly recommended that the Interconnection Customer obtain Area
EPS written approval prior to ordering protective equipment for parallel operation.
The Interconnection Customer will own these protective measures installed at their
facility.
(c)The Interconnection Customer shall obtain prior approval from the Area EPS for any revisions
to the specified relay calibrations.
C) Commissioning Testing
The following tests shall be completed by the Interconnection Customer. All of the required tests in
each section shall be completed prior to moving on to the next section of tests. The Area EPS
operator has the right to witness all field testing and to review all records prior to allowing the system
to be made ready for normal operation The Area EPS shall be notified, with sufficient lead time to
allow the opportunity for Area EPS personnel to witness any or all of the testing.
i) Pre-testing The following tests are required to be completed on the Generation System prior to
energization by the Generator or the Area EPS. Some of these tests may be completed in the factory if
no additional wiring or connections were made to that component.These tests are marked with a "*"
(1)Grounding shall be verified to ensure that it complies with this standard,the NESC and the NEC.
(2)* CT's (Current Transformers) and VT's (Voltage Transformers) used for monitoring and
protection,shall be tested to ensure correct polarity, ratio and wiring
(3)CT's shall be visually inspected to ensure that all grounding and shorting connections have been
removed where required.
(4)Breaker/Switch tests —Verify that the breaker or switch cannot be operated with interlocks in
place or that the breaker or switch cannot be automatically operated when in manual mode.
Various Generation Systems have different interlocks, local or manual modes etc. The intent of
this section is to ensure that the breaker or switches controls are operating properly.
(5)* Relay Tests—All Protective relays shall be calibrated and tested to ensure the correct operation
of the protective element. Documentation of all relay calibration tests and settings shall be
furnished to the Area EPS operator.
(6)Trip Checks - Protective relaying shall functionally tested to ensure the correct operation of the
complete system. Functional testing requires that the complete system is operated by the
injection of current and/or voltage to trigger the relay element and proving that the relay element
trips the required breaker, lockout relay or provides the correct signal to the next control
element.Trip circuits shall be proven through the entire scheme(including breaker trip)
For factory assembled systems, such as inverters the setting of the protective elements
may occur at the factory. This section requires that the complete system including the
wiring and the device being tripped or activated is proven to be in working condition
through the injection of current and/or voltage.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
(7)Remote Control, SCADA and Remote Monitoring tests—All remote control functions and remote
monitoring points shall be verified operational. In some cases, it may not be possible to verify all
of the analog values prior to energization.Where appropriate,those points may be verified during
the energization process
(8)Phase Tests —the Interconnection Customer shall work with the Area EPS operator to complete
the phase test to ensure proper phase rotation of the Generation and wiring.
(9)Synchronizing test — The following tests shall be done across an open switch or racked out
breaker. The switch or breaker shall be in a position that it is incapable of closing between the
Generation System and the Area EPS for this test.This test shall demonstrate that at the moment
of the paralleling-device closure, the frequency, voltage and phase angle are within the required
ranges, stated in IEEE 1547. This test shall also demonstrate that is any of the parameters are
outside of the ranges stated; the paralleling-device shall not close. For inverter-based
interconnected systems this test may not be required unless the inverter creates fundamental
voltages before the paralleling device is closed.
ii) On-Line Commissioning Test — the following tests will proceed once the Generation System has
completed Pre-testing and the results have been reviewed and approved by the Area EPS operator. For
smaller Generation Systems the Area EPS may have a set of standard interconnection tests that will be
required. On larger and more complex Generation Systems the Interconnection Customer and the Area
EPS operator will get together to develop the required testing procedure. All on-line commissioning
tests shall be based on written test procedures agreed to between the Area EPS operator and the
Interconnection Customer.
Generation System functionally shall be verified for specific interconnections as follows:
(1)Anti-Islanding Test—For Generation Systems that parallel with the utility for longer than 100msec.
(a)The Generation System shall be started and connected in parallel with the Area EPS source
(b)The Area EPS source shall be removed by opening a switch, breaker etc.
(c)The Generation System shall either separate with the local load or stop generating
(d)The device that was opened to remove the Area EPS source shall be closed and the
Generation System shall not re-parallel with the Area EPS for at least 5 minutes.
iii) Final System Sign-off.
(1)To ensure the safety of the public, all interconnected customer owned generation systems which
do not utilize a Type-Certified system shall be certified as ready to operate by a Professional
Electrical Engineer registered in the State of Minnesota, prior to the installation being considered
ready for commercial use.
iv) Periodic Testing and Record Keeping
342
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
(1)Any time the interface hardware or software, including protective relaying and generation control
systems are replaced and/or modified, the Area EPS operator shall be notified. This notification
shall, if possible, be with sufficient warning so that the Area EPS personnel can be involved in the
planning for the modification and/or witness the verification testing. Verification testing shall be
completed on the replaced and/or modified equipment and systems.The involvement of the Area
EPS personnel will depend upon the complexity of the Generation System and the component
being replaced and/or modified. Since the Interconnection Customer and the Area EPS operator
are now operating an interconnected system. It is important for each to communicate changes in
operation, procedures and/or equipment to ensure the safety and reliability of the Local and Area
EPSs.
(2)All interconnection-related protection systems shall be periodically tested and maintained, by the
Interconnection Customer, at intervals specified by the manufacture or system integrator. These
intervals shall not exceed 5 years. Periodic test reports and a log of inspections shall be
maintained, by the Interconnection Customer and made available to the Area EPS operator upon
request. The Area EPS operator shall be notified prior to the period testing of the protective
systems, so that Area EPS personnel may witness the testing if so desired.
(a)Verification of inverter connected system rated 15kVA and below may be completed as
follows; The Interconnection Customer shall operate the load break disconnect switch and
verify the Generator automatically shuts down and does not restart for at least 5 minutes
after the switch is close
(b)Any system that depends upon a battery for trip/protection power shall be checked and
logged once per month for proper voltage. Once every four years the battery(s) must be
either replaced or a discharge test performed. Longer intervals are possible through the use
of"station class batteries"and Area EPS operator approval.
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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Source - Area EPS
M METERING(SEE TABLE 5A)
AREA EPS
LOCAL EPS SERVICE ENTRANCE EQUIPMENT
(ACCESSIBLE.VISIBLE&LOCKABLE
DISCONNECT DEVICE)
OPTIONAL,BUT RECOMMENDED
I 1
I TRANSFER SWITCH
i 1 -BREAK-BEFORE-MAKE
I 1 -MECHANICALLY INTERLOCKED
1 1
� I
I I
LOAD
ACCESSIBLE.VISIBLE&
(LOCKABLE DISCONNECT DEVICE
(OPTIONAL BUT RECOMMENDED)
1-PHASE OR
I 3-PHASE
GENERATOR
1
NOTE' BREAK-BEFORE-MAKE
AUTOMATIC TRANSFER
SWITCHES SHALL BE
MECHANICALLY INTERLOCKED
OPEN TRANSITION
"BREAK-BEFORE-MAKE"
DATE: Figure 1
JAN 2003 g
344
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Source -Area EPS
M METERING(SEE TABLE 5A)
AREA EPS
SERVICE ENTRANCE EQUIPMENT
LOCAL EPS (ACCESSIBLE,VISIBLE&LOCKABLE
DISCONNECT DEVICE)
eie
62PL 3)
•
•
ACCESSIBLE.VISIBLE&
TRANSFER SWITCH QUICK OPEN OR OCKABLE DISCONNECT DEVICE
LOAD CLOSED TRANSITION-'fv1AKE BEFORE BREAK' (OPTIONAL BUT RECOMMENDED)
0.5 SEC.MAX PARALLEL TIME
50/51
CT(3)
(3)
Device No Function Tnvs
25 Synchronizer BREAKER'A'MAY SERVE AS 1111
ACCESSIBLE DISCONNECT
25SC 'Synch-check Relay DEVICE IF DRAWOUT
50151 Phase Overcurrent 861A
51N Ground Overcurrent 3-PHASE Tripped by
GENERATOR 62PL
62PL 'Parallel Limit Timer 861A
86 'Lockout Relay A
QUICK OPEN OR
CLOSED TRANSITION
(1)(2)(3) Indicates Number of Phases to be Monitored "MAKE-BEFORE-BREAK"
•Indicates Minimum Requried Protection DATE:
Other Relays Shown are Recommended for Generator Protection JAN 2003 Figure 2
345
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
SOURCE -AREA EPS
iPROTECTION SHOWN IS FOR GROUNDED WYE-
GROUNDED WYE TRANSFORMER
'� FOR OTHER TRANSFORMER CONNECTIONS CONTACT THE
W AREA EPS OPERATOR FOR POSSIBLE ADDITIONAL
PROTECTIVE REQUIREMENT
M METERING(SEE TABLE 5A)
AREA EPS
LOCAL EPS SERVICE ENTRANCE EQUIPMENT
(ACCESSIBLE.VISIBLE&LOCKABLE DISCONNECT DEVICE)
BREAKER A MAY SERVE AS VISIBLE DISCONNECT DEVICE IF
DRAW-OUT BREAKER
• • • •
50.51 0 411
(3) (3) (3) CT(3) 25 181 0JU/ Co) 59
1111)„
/(1) 4111(3)G3)
A
(3)
Il•
ACCESSIBLE.VISIBLE&
LOCKABLE DISCONNECT DEVICE
LOAD (OPTIONAL BUT RECOMMENDED)
Device No Function Trips
25 Synchronizer 50151 II
25SC 'Synch-check Relay CT(3) ,' (3)
27159 *Under/Over Voltage 861B
32 'Reverse Power(Trip
for power toward Utility 8618 BREAKER MAYSERVE AS a to 40 0
VISIBLE DISCONNECT
ECT
47 Negative Sequence 86113 DEVICE IF DRAW-OUT BKR
(1)
50151 'Phase Overcurren: 8618
51N 'Ground Overcurrent 861E 3-PHASE
GENERATOR
62PL Parallel Limit Timer 861E
81 'Over/UnderFrequency 8613
86 'Lockout Relay B SOFT LOADING TRANSFER
LIMITED PARALLEL
OPERATION
(1)(2)(3) Indicates Number of Phases Monitored
•Indicates Minimum Requried Protection. DATE:
Other Relays Showr are Recommended for generator Protection JAN 2003 Figure 3
346
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
SOURCE -AREA EPS
PROTECTION SHOWN IS FOR GROUNDED WYE-
GROUNDED WYE TRANSFORMER
FOR OTHER TRANSFORMER CONNECTIONS CONTACT THE
" �' ^ ^ J. AREA OT EPS OPERATOREQUIRFOR POSSIBLE ADDITIONAL
Y �/ \ PROTECTIVE REQUIREMENT
M METERING(SEE TABLE 5A)
AREA EPS
LOCAL EPS SERVICE ENTRANCE EQUIPMENT
I (ACCESSIBLE,VISIBLE&LOCKABLE DISCONNECT DEVICE)
BREAKER A MAY SERVE AS VISIBLE DISCONNECT DEVICE IF
DRAW-OUT BREAKER
50/51
3) (3) (3)
CT(3) 3 . 81 O/U 1�59
01) ED
(1) (31 (3) — (3)
. . A
•
LOAD♦ I ACCESSIBLE,VISIBLE&
DEPENDING UPON LOCKABLE DISCONNECT DEVICE
pewee No Function Jnog THE RELATIVE SIZE (OPTIONAL BUT RECOMMENDED)
25 Synchronizer
OF THE LOAD TO THE
25SC 'Synch-check Relay GENERATION,
BREAKER B MAY BE
27159 'Under/Over Voltage 86/A TRIPPED INSTEAD OF
BREAKER A,FOR 50/51 cil
32 'Reverse Power(Trip SOME OR ALL OF THE
for power toward Area EPS 86/B PROTECTIVE CT(3) (3)
FUNCTIONS
47 Negative Sequence 861A
BREAKER'B MAY
50 151 Phase Overcurrent 86/A SERVEVISIBLE
DISCONNECT
51N 'Ground Overcurrent 861A DEVICE IF DRAW-OUT
BREAKER (1)
62PL 'Parallel Limit Tinier 86/A
67 Directional Overcurrent 86/A 3-PHASE
GENERATOR
81 'Oven'Under Frequency 86/A
86A 'Lockout Relay A
868 'Lockout Relay B SOFT LOADING
TT •Transfer Tap 86/A EXTENDED PARALLEL
TT is not required(or Generation Systems smaller then 250kW OPERATION
(1)(2)(3) Indicates Number of Phases Monitored _
'Indicates Minimum Requried Protection. DATE: Figure
Other Relays Shown are Recommended for generator Protector. JAN 2003
347
SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS
Source -Area EPS
T PROTECTION SHOWN IS FOR GROUNDED WYE•GROUNDED WYE
TRANSFORMER FOR OTHER TRANSFORMER CONNECTIONS
CONTACT THE AREA EPS FOR POSSIBLE ADDITIONAL PROTECTIVE
REQUIREMENTS
® METERING(SEE TABLE 5A)
Area EPS
Local EPS
SERVICE ENTRANCE EQUIPMENT
• (ACCESSIBLE.VISIBLE 8 LOCKABLE
DISCONNECT DEVICE!
•
Q81pJU(31 (3)
jt
50/51 W
(3) UL LISTED
NON-ISLANDING
INVERTER
LOAD
REVIEW NEC CODE FOR OTHER
GENERATOR PROTECTIVE DEVICES REQUIRED TO
PROTECT THE LOCAL EPS
FOR INVERTER CONNECTED
pevice No, Function GENERATION SYSTEMS. GREATER THEN
27/59 'Under/Over Voltage 250KW, TRANSFER TRIP MAY BE
47 Negative Sequence REQUIRED BY THE AREA EPS
OPERATOR
50 t 51 Phase Overcurrent
51N GroundOverourren:
8101J 'Over/Under Frequency
INVERTER CONNECTED
(1)(2)(3) Indicates Number of Phases Monitored
'Indicates Minimum Requried Protection, DATE:
Other Relays Shown are Recommended for Generator Protection JAN 2003 Figure 5
348
SCHEDULE 4-AVERAGE INCREMENTAL ENERGY COSTS
2019 MMPA Distributed Generation Payment Rates
Summer Months (Jun -Sep) Energy($/kWh) Capacity($/kWh) REC($/kWh)
On Peak 0.0325 0 0
Off Peak 0.0212 0 0
All Hours 0.0264 0 0
Winter Months(Oct-May)
On Peak 0.0308 0 0
Off Peak 0.0230 0 0
All Hours 0.0267 0 0
Annual (Jan-Dec) 0.0266 0 0
349